THE TAX HEALTH PLAN FOR DOCTORS (COURTESY OF HMRC!)

The Inland Revenue have just announced their Tax Health Plan (THP) for doctors. This essentially provides medical professionals with the opportunity to disclose all previously undeclared income at a fixed penalty of no more than 10%.

HM Revenue & Customs (HMRC) is using its legal powers to obtain information from various sources, including NHS Trusts, private hospitals and medical insurers. It will then use this information to carry out targeted investigations aimed at medical professionals.

HMRC have stated that many medical professionals have declared all their income and paid the right amount of tax but they are aware that some have not. THP has been described by HMRC as an opportunity for those who fall into the latter category to put 'their house in order.'

There is a short window of opportunity for medical professionals to make full disclosure and benefit from the reduced penalty on offer. Notification of the intention to make a voluntary disclosure needs to be registered by 31st March 2010. Then, by 30th June 2010, full disclosure of the income undeclared and tax due must be made along with arrangements to pay the tax due, plus interest and penalty. The period covered by THP is the last 20 years up to 5th April 2008.

If the conditions of THP are met, then HMRC have stated that there will be:

• A fixed penalty of 10% of the taxes/duties underpaid
• No penalty where the total of unpaid taxes or duties is less than £1,000.

HMRC have stated that the benefits of the plan are that medical professionals can avoid the possibility of a penalty of up to 100% of the tax due and an investigation resulting in criminal prosecution.

We recommend that you review your financial affairs and consider whether any income may have been under-declared. If you then consider making a disclosure to HMRC then expert advice should be sought from an accountant used to dealing in such matters.

Please contact us if you have any queries on this article or indeed, on any general accountancy or tax matters:

Neil Morrison, Perth - 01738 441 888
Roy Hogg, Stirling - 01786 460 030