HMRC Campaigns: The Health and Wellbeing Tax Plan

 In inTAX

HMRC Campaigns – The Health and Wellbeing Tax Plan

HM Revenue and Customs has launched another campaign against the health industry. It seems that those in the health profession which we all rely on, are considered to be high risk for tax evasion or tax fraud in the minds of HMRC. Again, HMRC says it has information from third parties and regulatory bodies which will identify those likely to have failed to declare all their income. The third parties are likely to be insurance companies, the National Health Service, and private hospitals for example.

In an effort to educate people about campaigns, it has taken the unusual step of putting a video on youtube here – and within the three minute video, HMRC provides some case studies. Interestingly all comments have been disabled!

Who is included in this campaign?

  • Physiotherapists
  • Occupational therapists
  • Chiropractors
  • Osteopaths
  • Chiropodists
  • Podiatrists
  • Homeopaths
  • Dieticians
  • Nutritional therapists
  • Reflexologists
  • Acupuncturists
  • Psychologists
  • Speech, language and art therapists

Unsurprisingly those targeted in previous campaigns are excluded, for example doctors and dentists. Social workers and nurses are also specifically excluded.

What are the time limits?

Those people who want to put their tax affairs right have until 31 December 2013 to notify HMRC that they would like to take part in the campaign.

They then have a very short period, just over 3 months, to tell HMRC how much is owed and pay the tax. The deadline is 6 April 2014.

What are the benefits?

Surprisingly few. A discounted penalty if an approach is made to HMRC rather than the other way round. But that is always the case.

What happens if I don’t come forward?

After 31 December, HMRC will scrutinise the tax affairs of anyone they consider to be a risk. If tax is found to be due, the penalty is likely to be higher, and there is a threat of criminal prosecution.

What should I do?

If you think there may be a problem, seek specialist advice. Many people make mistakes in completing their returns, and in particular, one area that health professionals are always examined on is their travelling. Please click here for further information.

The members of inTAX are extremely experienced in dealing with tax enquiries, tax investigations, and voluntary disclosures, and would be happy to help. Call inTAX now for a free consultation.

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