Categorized | PAYE, umbrella companies

Contractors sheltered from new disclosure opportunity

Contractors sheltered from new disclosure opportunity

We are aware of HMRC plans to offer medical professionals a disclosure opportunity in respect of unpaid taxes. The Tax Health Plan will allow medical professionals the chance to disclose any arrears and settle them with interest and a ten per cent penalty.

Those who fail to make a disclosure who are subsequently investigated by HMRC and found to owe taxes could then face a one hundred per cent penalty.

HMRC have accessed information regarding the earnings of medical professionals from the NHS, medical health insurance companies, private hospitals and certain contractor accountants. Prior to acting on the information they hold, HMRC are offering medical professionals the opportunity to confirm their intention to disclose their earnings by 31st March 2010. They will then have until 30th June 2010 to make their full disclosure.

Mike Well from HMRC has suggested that the government already has an abundance of information at it’s disposal that could be used to investigate medical professionals. He said “I strongly urge any in this group who think they may have outstanding tax liabilities on their income to get in touch with HMRC and get their tax affairs in order simply and on the best available terms.”

This disclosure opportunity is likely to be extended across other sectors in the future. Contractors using umbrella companies , such as Crystal Umbrella, are unaffected since their taxes are deducted fully through PAYE. It is expected that the umbrella model and online accountants will become increasingly more popular with medical professionals who are keen to minimise their taxes without the hassle of extra administration.

Scott Illingworth is Director of Service Delivery at Crystal Umbrella.
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