Her Majesty’s Revenue and Customs (HMRC) regularly carries out concentrated operations on various groups of taxpayers whom they suspect of making incorrect returns of their income.
The latest group to come under the microscope are doctors and other medical professionals.
Under the Tax Health Plan, which was announced in January, doctors and dentists who have failed to disclose all their earnings have until 31 March 2010 to notify HMRC that they wish to make a disclosure. They then have a further three months to 30 June to submit it their disclosure and make full payment.
All the HMRC needs to begin an enquiry into an individual’s tax affairs is a ‘suspicion’ that there may be items declared incorrectly or not declared at all. It is then up to the taxpayer to prove them wrong - ‘innocent until proven guilty’ does not apply to HMRC enquiries.
It can get even worse. It is often the case that if something makes HMRC think a taxpayer does merit an enquiry, they will not stop at a single year. The current year and the six previous years can all be brought into consideration.
You are probably now thinking that this could not apply to me but think again. Have you declared all the money you have received from cremation form fees and similar items? What about locum work? Have you declared all of it on your tax return?
You might be thinking that because your locum agency work was taxed at source you are in the clear - think again, it might not be taxed at the correct rate leading to an underpayment of tax. Remember, this is your responsibility not the taxman’s nor the agency’s.
Come to that, have you completed tax returns? If you have extra income the responsibility is on you to make the declaration not upon HMRC to ask you to do so.
It isn’t all gloom and doom. There may be items which you can claim against your tax which you haven’t thought about. You may even have been overpaying tax in your main job which happens more than you might think.
If you are in any doubts at all, go and ask for some professional help in looking at your tax affairs - it could well soften any nasty shocks and you may even be pleasantly surprised!
Michael Hankey is the tax team manager at Simpson Burgess Nash. He can be contacted on michael.hankey@sbnca.com
Oh come on, are you telling me they’re going to be worried about ash cash?! Private work, yes, locum work, yes, bits and bobs, surely not.