HMRC targeting Hospital Consultants, Veterinary practices and Fish & Chip shops

December 8th 2009

We have learned that HMRC has identified ‘upwards’ of 800 Hospital Consultants to be investigated in 2010.   Lothians Area District in Edinburgh have been tackling the consultants on private expenses and achieving good results while Centre 1 Area District were challenging them for private income as well.

Up until now the motor and travel expense claims have been the primary risk areas identified by HMRC, but the emphasis will change in the New Year. HMRC has issued formal notices to BUPA, Sun Life and other institutions who pay commission to Hospital Consultants to identify enquiry cases where the commissions appear to have either been understated or omitted from Tax Returns.

The motor and travel expense claims will feature as part of the overall enquiry strategy into Hospital Consultants, with the outcome of a test Tribunal case due around the same time in early 2010.

HMRC has also widened the scope of its activities into the medical profession as a whole and has launched widespread status enquiries, as well as investigations into NHS Trusts.

We understand that in the South West, HMRC are targeting Veterinary practices and the enquiries all include common themes relating to the use of Locums and staff accommodation. At present this is believed to be a regional ‘project’ being conducted by HMRC but this could be rolled out nationally if common errors arise or the yield obtained is significant. At the start of a Veterinary enquiry, HMRC are issuing a standard questionnaire to help assess the potential risks.

Another current target of HMRC is Fish & Chip shops. We have identified a marked increase in the number of claims being received in respect of this trade.

If you have any queries regarding the above please call Iain Macleod on 07920 146800 or email imacleod@edftax.co.uk.