Medics set to receive tax warning
Doctors and dentists will be at the receiving end of an examination next week when many of them get letters warning them their tax affairs aren't in order.
In a bid to step up its Tax Health Plan, HM Revenue and Customs (HMRC) is to send out letters informing 2,500 medics the tax man knows their affairs aren't up to date. The letters will give medics 21 days to set things right.
Any who fail to do so could see their case referred to the Criminal Investigations department with a view to prosecution, warned the Chartered Institute of Taxation (CIOT).
Alternatively HMRC could 'make a determination', which would see the taxpayer incur hefty extra charges.
Gary Ashford, who represents the CIOT on HMRC's Compliance Reform Forum, said: "People should not underestimate the amount of data that HMRC is holding.
"They have been talking to medical insurance companies, pharmaceutical companies and locum agencies.
"What we are now seeing is HMRC starting to use that information, to identify who has not notified HMRC of all their tax liabilities."
He added: "These are 2,500 health professionals who HMRC are not giving a clean bill of tax health to.
Copyright © Press Association 2011
Find Your Financial Consultant