HM Revenue & Customs (HMRC) has launched a Tax Health Plan (THP) to offer medical professionals the opportunity to disclose understated income. Since the initial release of the THP, further guidance has been provided by HMRC to state that dentists as well as GMC members are included within the THP.

Intention to notify must be made by 31 March 2010 and then, once registered, disclosure along with payment of tax, interest and penalties must be made by 30 June 2010.

Accountants are able to notify and disclose on behalf of their clients. To notify you will need your GMC registration number and National Insurance number.

HMRC will not calculate your tax, interest or penalties so you or your accountant will need to calculate this. The penalty, to include with your disclosure, is 10% of the underpaid taxes/duties and Class 4 National Insurance unless the unpaid liability is less than £1,000 where there will be no penalty. Interest will be calculated from the date the tax was due to the date of payment. Details of interest rates can be found on the HMRC website by clicking here.

HMRC has stated that they will “pursue those with undeclared tax liabilities who decide not to make a disclosure. In these cases the penalties could be up to 100% of the tax due and in exceptional circumstances criminal investigation may be considered”.

Click here to find out more information on the HMRC website. Alternatively, please contact us and we can assist you.