CIOT comments on HMRC’s Tax Health Plan
The Chartered Institute of Taxation (CIOT) notes that with the launch today by HMRC of their new Tax Health Plan (THP) for medical professionals, HMRC are showing how they will increasingly be tackling tax non-compliance.
The THP follows the ‘New Disclosure Opportunity’ (NDO), aimed at those with undeclared overseas income, which closed on 4 January. HMRC are using their new information powers to obtain huge amounts of data from third parties about individuals’ tax affairs. Having used their powers to obtain information about offshore bank accounts from UK banks, in this latest initiative they have been approaching NHS Trusts, private hospitals and private medical insurers.
Gary Ashford, Chairman of the Chartered Institute of Taxation’s Management of Taxes committee, said:
“HMRC have effectively structured their compliance risk and information gathering function into a national unit and we are now starting to see the results of their work.
“The THP shows the way ahead for HMRC. We have just seen the New Disclosure Opportunity end with 10,000 disclosures to HMRC. Now it is the turn of health professionals; clearly other sectors may follow.”
The CIOT does have concerns about the timescale of this new initiative.
Gary Ashford, who has considerable experience and expertise in helping taxpayers get their tax affairs in order, added:
“The THP is targeting a problem that does exist: I’ve acted for a number of health professionals making tax disclosures of unearned income in the past. The CIOT broadly welcomes the THP but we do think the time windows are very tight and we would have preferred a little more time to ensure medical professionals are aware of the opportunity.”
Notes to Editors
1) The HMRC announcement of the Tax Health Plan can be found at http://nds.coi.gov.uk/clientmicrosite/Content/Detail.aspx?ClientId=257&NewsAreaId=2&ReleaseID=410208&SubjectId=36.
The THP is open to medical professionals with tax irregularities arising from undeclared earned income. HMRC has obtained information about payments to medical professionals from NHS Trusts, private hospitals and medical health insurance companies.
The THP requires a medical professional who wishes to take advantage of the disclosure opportunity to disclose by notifying HMRC of their intention to make a disclosure by 31 March 2010 and then disclosing by 30 June 2010.
Those taking advantage of the THP will have to pay the tax involved together with interest, but will only face a 10% penalty, instead of the potential 100% penalty that could be applied. This is in line with the various offshore disclosure offers HMRC have made.
2) The Chartered Institute of Taxation (CIOT) is a charity and the leading professional body in the United Kingdom concerned solely with taxation. The CIOT’s primary purpose is to promote education and study of the administration and practice of taxation. One of the key aims is to achieve a better, more efficient, tax system for all affected by it – taxpayers, advisers and the authorities.
The CIOT’s comments and recommendations on tax issues are made solely in order to achieve its primary purpose: it is politically neutral in its work. The CIOT will seek to draw on its members’ experience in private practice, government, commerce and industry and academia to argue and explain how public policy objectives (to the extent that these are clearly stated or can be discerned) can most effectively be achieved.
The CIOT’s 14,900 members have the practising title of ‘Chartered Tax Adviser’.
– ENDS –
George Crozier
External Relations Manager
D: +44 (0)20 7340 0569
M: +44 (0)7740 477374
gcrozier@ciot.org.uk
The Chartered Institute of Taxation
Registered charity number 1037771
www.tax.org.uk
-01.png){kind=spacer}