HM Revenue and Customs (HMRC) has reminded healthcare professionals that they are running out of time to bring their tax affairs up-to-date on the best terms possible under the Health and Wellbeing Tax Plan, launched in October 2013.
180,000 employees including psychologists and physiotherapists were given the chance to get their taxes in good order through HMRC’s innovative scheme.
HMRC wrote to more than 1,000 people identified as having outstanding Self-Assessment returns between 2009 and 2012. Those people affected had until the end of 2013 to confirm their wish to bring their tax affairs up-to-date. They now have until 6th April 2014 to make the disclosure and pay the outstanding amount.
Those who choose to participate in the Health and Wellbeing Tax Plan will still have to pay the outstanding tax and interest, but they will only be required to pay a maximum of 35 per cent of their combined late filing penalties as a bonus for coming clean and avoiding a potentially expensive and serious tax enquiry.
It is not the first time HMRC has carried out such a campaign. In 2010, the Medics Tax Health Plan campaign, focusing on doctors and dentists, helped 1,500 professionals get their tax affairs in order to the tune of £10.5 million. To date, the campaign has generated £54 million in tax payments from customers.
Now that the notification window has closed for the Health and Wellbeing Tax Plan, HMRC is expected to carry out a series of compliance interventions using its sophisticated software to pinpoint professionals who have not come forward voluntarily through the tax plan.
If you wish to find out more about the campaign you can watch HMRC’s official campaign video or visit the voluntary disclosure campaign webpage.
Call us today on 0800 0523 555 or complete our enquiry form and we will identify your nearest TaxAssist Accountant in order to book a FREE initial consultation