HMRC Threaten Doctors and Dentists Who Don't Come Forward

Doctors, dentists and other medical contractors are advised to seek the advice of a specialist accountancy service as HM Revenue & Customs (HMRC) look to crack down on tax compliance in the medical profession. HMRC is set to issue letters to around 2,500 medical professionals, in the latest stage of its Tax Health Plan (THP) to stamp out evasion.

Recipients will be urged to get up to date and inform HMRC of earnings that have not been levied. A 21-day deadline will be imposed, after which time individuals may be heavily penalised or even face the same level of criminal prosecution that has so far resulted in nine arrests since the tax safe plan for plumbers ended in the summer.

In January last year, the Government offered reduced penalties to those coming forward with unpaid taxes. Over 1,500 health professionals took advantage and this helped increase HMRC's tax yield by £10m, but many failed to take advantage of the offer of the relatively low penalty rate. HMRC is now looking to come down hard on people in the profession who haven't come forward.

HMRC have been talking to medical insurance companies, pharmaceutical companies and locum agencies, therefore it should not be underestimated the amount of data that HMRC are current in possession of. Tax officials are now adopting an increasingly sophisticated approach to their campaigns. As well as threats of prosecution, some of the letters in this latest offensive show that the taxman has adopted nudge theory, trying to shame doctors into acting.

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