UK Amnesty Deadline Looms

by Robert Lee, Tax-News.com, London

17 March 2010

HM Revenue and Customs (HMRC) has reminded medical professionals with undisclosed tax liabilities that they have until the end of this month to make a notification of disclosure under the 'Tax Health Plan' (THP) amnesty scheme.

Launched on January 11, medical professionals have until March 31 to register their intention to make a voluntary disclosure with HMRC. By June 30, those who have registered must have made their disclosure as well as arrangements to pay all tax, interest and penalties due.

If HMRC receives a full and accurate disclosure of any income on which tax has not been paid, along with payment, by June 30, those who qualify can expect a reduced penalty of 10%.

According to RSM Tenon, the accountancy firm, HMRC has written to over 20,000 doctors and dentists to raise awareness of the THP. "Whilst not every person to whom it writes will actually have something to disclose given the number of people it is writing to some will have," commented Gary Ashford, Tax Director of Tax Risks, Disputes and Investigations at RSM Tenon.

However, despite HMRC's efforts to promote the scheme, Ashford is expecting a low take-up of the amnesty offer due to the registration deadline coinciding with the end of the National Health Service's year, and he urged HMRC to extend the deadline.

"Early signs are that not many medical professionals are taking up the disclosure facility offered by HMRC and my concern is that they are so busy focusing on their mountain of paperwork that they have not even considered their position," Ashford noted.

"HMRC’s view is that several thousand doctors and dentists are potentially eligible to make a disclosure under the THP and my worry is that the clock is ticking and the medical professionals will simply run out of time.  We would encourage HMRC to continue in the spirit in which this tax disclosure facility is offered and extend the deadline until April 30, 2010,” he concluded.

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