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Question.
HMRC have recently targeted plumbers and private tutors in their campaign to recover unpaid tax. What sector will be targeted next?
Answer.
Doctors and dentists are the latest targets of HMRC's campaign to recover unpaid tax. A final warning has been issued to more than 2500 health professionals. These are professionals HM Revenue and Customs (HMRC) suspect are not up to date with their tax affairs. The move is the latest in a raft of HMRC targets, which have so far included restaurant owners, plumbers, private tutors and scrap metal dealers. People selling on internet market places and electricians are next on the list to be targeted in early 2012. The letters warn that if medics fail to come forward within 21 days, they may end up incurring significant charges, or may be referred to the Criminal Investigations department. Gary Ashford, who represents the Chartered Institute of Taxation on HMRC's Compliance Reform Forum, commented: “HMRC made clear at the launch of the Tax Health Plan in January 2010 that they would be adopting a carrot and stick approach. They have offered the carrot of a relatively low penalty rate for doctors to get their affairs in order and 1500 health professionals took it up, bringing in £10 million for the Exchequer. Now they are wielding the stick at those who have not come forward. 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. HMRC are starting to use that information, to identify who has not notified HMRC of all their tax liabilities.” Anyone who is worried that they have been underpaying tax - whether deliberately or in error, and whether they are doctors or anyone else - should get professional advice without delay. The advice above is specific to the facts surrounding the questions posed. Neither FPM Accountants LLP nor the contributors accept any liability for any direct or indirect loss arising from any reliance placed on replies.
Email j.burns@fpmca.com
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