The Health and Wellbeing Tax Plan Campaign has entered its final week, with HM Revenue & Customs (HMRC) warning health professionals of the compliance action which will follow a failure to declare undisclosed taxable income.
In an unusual move, HMRC has threatened taskforce action against those health professionals who fail to use the campaign. HMRC taskforces typically focus on a specific geographical area, with multi-discipline teams of officers descending unannounced on a particular target. For example, HMRC is currently operating taskforces into restaurants in London and East Anglia and the construction industry across the Midlands.
HMRC is saying it will visit health professionals to examine their business records and ‘carry out other investigations’ and has mentioned potential criminal prosecution for the worst offenders. Seven people have already been convicted, with custodial sentences handed out of up to two years, as a result of previous HMRC campaign activity.
Jennie Granger, Director General of Enforcement and Compliance for HMRC, said:
‘Health professionals have been given every opportunity to take advantage of our quick and straightforward way of bringing their tax affairs up to date.
‘We will now use information we hold from third parties and regulatory bodies to identify people who have not paid what they owe. Penalties – or even criminal prosecution – could follow.’
The HMRC Health and Wellbeing telephone hotline is 0845 600 4507 and full details on the campaign itself can be viewed here https://abbeytaxblog.co.uk/2013/10/07/the-hmrc-health-and-wellbeing-tax-plan-campaign/#more-492
Author: Guy Smith, Senior Tax Consultant on the ReSource Tax and VAT Consultancy Team.