HMRC have set out fresh plans to uncover tax underpayments sector by sector. This new approach will begin with the medical sector. Medical professionals will have until 31st March this year to make a disclosure in return for a reduced penalty. Following this date, HMRC will investigate individuals based on the records they hold regarding their pay.
Those who do make a disclosure will have until 30th June 2010 to pay all tax, interest and any penalties due. They can expect to receive a discounted penalty of ten per cent. Anyone not making a disclosure who is later found to have underpaid tax can expect to pay a penalty of 100% on top of the tax and interest owed.
Mike Wells, HMRC’s Director of Risk and Intelligence, said as he launched the campaign: “Our aim is to make it as easy as possible for people to come forward, make a full disclosure and benefit from the certainty of a reduced 10 per cent penalty that HMRC is making available to those who qualify for this opportunity.
He continued: “From April we will be using the information at our disposal to investigate medical professionals who have not declared their full income. I therefore strongly urge any in this group who think they may have outstanding tax liabilities on their income to get in touch with HMRC and get their tax affairs in order simply and on the best available terms.
Mr Wells concluded: “This is the first step in enabling those with undisclosed income or gains to avoid a full tax investigation together with much higher penalties. The message is clear: contact us before we contact you.”