Kevin Reed, Accountancy Age, Friday 23 July 2010 at 15:56:00

Tax Health Plan channels to delcare untaxed income extended, but thefavourable terms have been tightened by HM Revenue & Customs (HMRC)

Dentists and doctors who failed to disclose untaxed income under the healthtax amnesty, which ended 30 June will be given until 1 September to make adisclosure that will benefit from a reduced penalty.

Around 1,500 disclosures were made by health professionals to HMRC under thedisclosure scheme, out of a predicted 28,500 who the taxman believed needed todeclare taxable income.

The channels to declare under the scheme will remain open for a few moreweeks, but discloses will not benefit from the 10% guaranteed penalty under theoriginal plan. Howvere, it will be less than the usual 40%+ under aninvestigation.

Investigations will be looking at prosecution from the outset ? particularlywhere hidden payments are involved, a source from HMRC told AccountancyAge.

Further reading:

Only1,500 declare under health tax amnesty