On 11 January 2010 HM Revenue & Customs (HMRC) announced that they seeking to tackle areas that they perceive as being a high tax risk by the use of campaigns similar to those we have already witnessed backed by Tax amnesties. On Monday HMRC announced the newest of their campaigns, the “Professional Campaign”. This will allow professionals who have not paid their income tax or corporation tax to settle their affairs quickly.

Initially the campaign will focus on medical consultants (doctors, dentists, hospital consultants, cosmetic surgeons earning more than £100,000 etc). HMRC believe that a small minority of medical professionals are understating their earnings by failing to declare private work and cash sums received for drafting medical reports. It is hoped that Consultants failing to disclose their full income will be relatively easily identified by investigators due to the ease of access to information on consultants earning through third parties such as Bupa and SunLife.

The opportunity is to be known as the 'Tax Health Plan'(THP):, the details of which can be summarised as:

• Medical professionals have until 31 March 2010 to register their intention to disclose.
• HMRC have provided a unique mailbox and telephone number to allow them to register.
• Disclosures must be made and payment completed by 30th June 2010.
• Disclosures must be made on HMRC’s prescribed forms.
• Pay all outstanding tax along with a fine of 10 per cent of the amount owing.
  

In addition to this reduced penalty fine those owning up will not face criminal prosecution. Those ignoring the opportunity to disclose undeclared income could face criminal prosecution. It should be remembered that Tax evasion could carry a custodial sentence of seven years. They could also find themselves 'named and shamed' on HMRC’s website.
 
As part of the campaign inspectors will issue formal notices to people suspected of tax evasion to make available their personal bank statements and business records. Inspectors also have the power to inspect business premises. Mike Wells, HMRC's director of risk and intelligence, said that once the amnesty had expired at the end of March HMRC would be 'using the information at our disposal to investigate medical professionals who have not declared their full income.'

Should you wish to discuss how this might affect you, or need assistance with making a disclosure please call Moore Hill Accountants for a confidential no obligations discussion.