New health and wellbeing disclosure opportunity
HMRC have issued a news release to confirm that they are offering health and wellbeing professions an opportunity to regularise their tax affairs. The Health and Wellbeing Tax Plan is designed for physiotherapists, occupational therapists, chiropractors, osteopaths, chiropodists and podiatrists.Homeopaths, dieticians, nutritional therapists, reflexologists, acupuncturists, psychologists, and speech, language and art therapists and others are also covered. The scheme covers any tax owed, for whatever reason. The campaign is not aimed at doctors and dentists, who have already been targeted by a separate HMRC campaign, nor at nurses or social workers.
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 by31 December 2013 of their intention to take part in the disclosure opportunity. An actual disclosure along with an arrangement to make payment of all tax, interest and penalties due must be made by6 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.
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.