23 July 2010
Results have been revealed by HM Revenue and Customs (HMRC) of both the New Disclosure Opportunity (NDO) and the Tax Health Plan (THP).
They were introduced as an opportunity for medical professionals with tax to pay to get their affairs up to date with the benefit of a fixed penalty.
Both raised significant revenues for HMRC: the NDO raised approximately £82m from 5500 disclosures (an average of £14500) and the THP raised £9m from 1500 disclosures (an average of £6500). However HMRC has indicated that there are a potential 28500 GPs, dentists and health professionals who still have undeclared earnings.
Stephen Camm, tax partner at PricewaterhouseCoopers LLP said:
HMRC is making it clear that it holds information, particularly in relation to doctors and dentists, that still hasn’t been disclosed. HMRC also highlighted that some disclosures have uncovered individuals who should have come forward but who have failed to do so; for example other partners in the same medical practice.
Investigations will start in the autumn in earnest. HMRC is already working on cases for prosecution and expect numbers to rise. There is no doubt that any medical practitioner that has something to disclose to HMRC must deal with this issue now.
Penalties for those who have not made a disclosure could be up to 100% of the tax due, and in exceptional circumstances criminal investigation may be considered.