HMRC to make an appointment with health and therapy professionals, warns accountant James Cowper Kreston

Health and wellbeing professionals can expect HMRC to make an appointment later this month to recover unpaid tax, warns accountants and business advisers James Cowper Kreston.

The warning follows HMRC intention to launch what it calls its ‘Health and Wellbeing Tax Plan’ on 9 October targeting osteopaths, chiropodists, chiropractors, physiotherapists, alternative medical practitioners and other therapists that it believes have not or underpaid tax.

Stephen Barratt, Private Client Tax Director at James Cowper Kreston said: “This campaign is designed to give health professionals the opportunity to come forward and disclose any unpaid or under paid tax.  This is a window of opportunity to get tax affairs in order before HMRC comes knocking.”

In targeting health professionals, HMRC recognises that there will be instances where individuals have either deliberately not declared income or made an honest mistake.  This distinction is important when looking at what penalty might be imposed.

Stephen adds: “HMRC is using increasingly sophisticated software to identify those who are not paying sufficient tax and the chances of going undetected are therefore diminishing.  This campaign offers health professionals the opportunity to come forward voluntarily and pay any unpaid tax, interest and penalties at a preferential rate.”

James Cowper Kreston offers this advice to those health professionals who believe that they may have an outstanding tax liability:

• Do not approach HMRC directly without first speaking with an accountant or tax adviser.  HMRC is an increasingly tough negotiator and without detailed knowledge of the tax system larger tax bills and penalties than necessary might be charged.
• Do not ignore this clampdown.  It is possible that HMRC is already aware of your financial details.  If HMRC make the first move because no voluntary disclosure has been made, penalties can be expected to be more severe.

Stephen Barratt, Director, James Cowper Kreston LLP, Tel +44 (0)1635 35255 or email