HMRC is writing to individuals it believes may have failed to declare consultancy income from private healthcare providers on their self-assessment tax returns. The letters follow information received from private healthcare providers and form part of an HMRC campaign specifically targeting the medical sector. 

The letter asks recipients to check their tax returns and make sure all consultancy income has been included. HMRC stresses that the letter is not a compliance check at this stage but warns that failing to take action could lead to a compliance check and potentially higher penalties if errors are subsequently found.

Recipients are given 30 days from the date of the letter to respond. If a tax return is incorrect and is still within the normal amendment period, it can be amended. Where the deadline for amending the return has passed, the individual can make a voluntary disclosure to HMRC instead.

Anyone who believes they have no consultancy income to disclose is also asked to contact HMRC within the 30-day period. If the recipient does not respond, HMRC says it will continue to monitor the individual’s records and may make a decision based on the information it holds.

The letter also highlights the potential impact on penalties. If HMRC subsequently finds an error, a disclosure made after the letter has been received will generally be treated as ‘prompted’. This can affect the penalty reduction available. However, HMRC says penalties can be reduced where individuals provide full details of mistakes, disclose them promptly and take steps to put matters right.

If you think you may be affected by this campaign, we can help you review your tax returns, identify any undeclared consultancy income and deal with HMRC where necessary. Please contact us if you would like advice on what to do next.