Health and wellbeing disclosure opportunity
The Health and Wellbeing Tax Plan offers physiotherapists, occupational therapists, chiropractors, osteopaths, chiropodists and podiatrists an opportunity to regularise their tax affairs. The scheme covers any tax owed, for whatever reason. The campaign is not aimed at doctors and dentists, who were have already been targeted by a separate HMRC campaign, nor at nurses or social workers. However, homeopaths, dieticians, nutritional therapists, reflexologists, acupuncturists, psychologists, and speech, language and art therapists and other similar fields are also covered by the plan.
The Wellbeing Tax Plan offers an opportunity for relevant professionals to disclose undeclared income and bring their tax affairs up to date. As a first step, qualifying taxpayers must notify HMRC by 31 December 2013 of their intention to take part in the disclosure opportunity. An actual disclosures along with an arrangement to make payment of all tax, interest and penalties due must be made by 6 April 2014.
Making a disclosure can significantly reduce the amount of penalties due and should avoid the possibility of criminal investigations taking place. Most disclosures under the plan will be subject to a penalty rate of 10% with a maximum rate of 20%. Health and wellbeing professionals who currently have undisclosed taxable income are advised to consider the benefits of making a disclosure under the plan. Readers who need more information, and are likely to be affected by this campaign, should call in good time to meet the 31 December deadline.
HMRC will begin investigating those who have failed to come forward after the 6 April 2014 deadline and anyone found to have undisclosed liabilities will face substantial penalties and possible criminal prosecution.