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Doctors are offered tax incentives to tidy their tax affairs

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19 January 2010
HM Revenue & Customs (HMRC) has launched a tax amnesty for doctors who have understated their income for tax purposes.

The amnesty is being called the ‘Tax Health Plan’ and enables doctors to make a voluntary disclosure and benefit from a reduced penalty of 10%.  

The following questions and answers provide a summary of the amnesty, but if you would like more information or help making a disclosure please contact :tax@hazlewoods.co.uk.

Do I qualify for the amnesty?
The amnesty is for medical professionals regulated by the General Medical Council.

When must the disclosure be made?
You have until 31 March 2010 to register your intention to make a voluntary disclosure with HMRC.

You then have until 30 June 2010 to make your disclosure as well as to make arrangements to pay all tax, interest and penalties due.

How do I notify my intention to make a disclosure?
You can either ring HMRC on 0845 600 4508

Why should I make a disclosure?
By providing a full and accurate disclosure of any income on which tax has not been paid, together with full payment, by 30 June 2010 you should receive a reduced penalty of 10%.

If you do not make a disclosure under the Tax Health Plan and have understated income in the past you could face:

  • penalties of between 20% and 100% of the tax due; and/or
  • a criminal investigation

How will HMRC know if I have understated my income?
HMRC will use the new powers they have recently been given to obtain information from third parties. It is likely that HMRC will ask NHS Trusts, private hospitals and private medical insurers to provide details of payments made to doctors. This information will then be compared to the income declared on doctors’ tax returns.

Has there been a tax amnesty like this before?
No previous amnesties have been aimed at a single profession, but HMRC do plan to provide similar opportunities to other professional groups soon.  

What next?
More information can be found on the HMRC website or contact us at 
tax@hazlewoods.co.uk.