Tax Health Plan

  • Revenue signal the targeting of professionals, starting with doctors & dentists
  • Undeclared income is the focus of the Revenue’s tax amnesty
  • Amnesty promises reduced penalties for the taxpayer
  • Intention to disclose must be made by 31 March 2010
  • Full disclosure and payment due by 30 June 2010

On 11 January 2010, HM Revenue & Customs (HMRC) launched the Tax Health Plan (THP), targeting medical professionals, including dentists.

The scheme provides a mechanism for taxpayers to provide details of previously undeclared income to Revenue.

Those wishing to take advantage of the plan must notify HMRC of their intention to make a disclosure by 31 March 2010. By 30 June 2010, those who have notified their intention to disclose must make a full disclosure of undeclared liabilities and pay any taxes, duties, interest and penalties that are due.

Revenue’s stated policy is to show leniency to those who have volunteered information under the THP .

If a full and accurate disclosure together with full payment is made by 30 June 2010, a reduced penalty of 10% will be charged. Those who fail to come forward voluntarily and are found to have undeclared income, could face penalties of up to 100 % of the tax due. Revenue may decide to open an investigation, which could ultimately (albeit in the most serious cases) result in a criminal prosecution.

HMRC are obtaining information from various sources, including NHS trusts, private hospitals and medical insurers and will pursue those with undeclared liabilities who do not make a disclosure.

The message is clear from HM Revenue & Customs – if medical professionals have undeclared liabilities, it is in their best interests to come forward under the Tax Health Plan and make a full disclosure to Revenue.