Time running out for health professionals

Time is ticking away for health professionals to bring their tax affairs up to date on the best possible terms in an HM Revenue & Customs’ (HMRC) campaign that could lead to more tax investigations and even prosecutions.

More than 180,000 people were offered the opportunity to put their tax affairs in order under the Health and Wellbeing Tax Plan, launched in October 2013.

The campaign targeted health professionals including physiotherapists, occupational therapists, chiropractors, osteopaths, chiropodists and podiatrists. Homeopaths, dieticians, nutritional therapists, reflexologists, acupuncturists, psychologists and speech, language and art therapists were also covered but not doctors, dentists, nurses and social workers.

Health professionals had until the end of 2013 to tell HMRC that they wanted to bring their tax affairs up to date and now have until 6 April 2014 to make a disclosure and pay what they owe.

HMRC warned: “Not taking advantage of the campaign opportunity could mean people face a penalty equivalent to up to 100 per cent of the tax and national insurance contributions owed – or even criminal prosecution.

“For those choosing not to come forward, we will use sophisticated software to identify and contact those who could owe tax.”

The government’s focusing on maximising tax revenue, including through sector-specific campaigns like the Health and Wellbeing Tax Plan, is likely to create an enhanced risk of tax investigations and the potentially serious consequences of these highlighted by HMRC.

With this in mind, any taxpayer concerned about their own tax affairs, and who believes they might become subject to a tax investigation, would be wise to seek expert advice. Our specialists at Taxation-Investigation can provide specialist advice to clarify their situation and on the options available to them, so they can make informed decisions about the best way forward. We can also assist in mitigating outcomes or presenting a robust defence where tax affairs are in order.