Tax Disclosure for Medical Professionals

Tax Disclosure for Medical Professionals

Didn't find your answer?

We have recently been appointed to act for a medical professional who has a small amount of undeclared income for 2008.  They spoke to HMRC prior to March about making a disclosure.  No tax return was completed in 2008 and it appears that some of the income that was thought to be undeclared was actually estimated by HMRC and coded out!

The main source of income was employment but HMRC issued 4 different codes.  The final code which included some underpaid tax from a previous year was not used by the employer.  This underpaid tax was therefore not repaid.  Does this need to be included and form part of the disclosure?

Thanks

Replies (3)

Please login or register to join the discussion.

avatar
By ACDWebb
17th Jun 2010 22:46

Looks like a bit of six & two threes

Client omitted, but there was a coding adjustment and HMRC has never properly closed off the year anyway - par for the course, we have seen adjustments coming through re P11d items two or three years later.

Have you calculated the total tax due - with and without the coded u/p that should have been collected (but was unlikely to be if it was included part way through the year by a coding adjustment)? 

Is there that much at stake?

 

Thanks (0)
avatar
By SDGREEN
17th Jun 2010 23:19

Underpayment £900

The underpayment from a previous tax year coded out was £900 but this tax code was not used. The client was not required to fill in tax return that year

My understanding is that the disclosure is for income etc that was not declared and therefore there is no need to disclose about the code.  HMRC are likely ot pick this up and adjust a future code?

Thanks (0)
avatar
By ACDWebb
18th Jun 2010 09:16

Ignoring the coded u/p

and bearing in mind there was apparently a coding restriction for the "omitted" income, what are we talking about in tax u/p for the year?

As before if HMRC were apparently aware and made an estimated coding adjustment there seems to be fault on both sides:

client for not advising the actual after the tax year end, whether a return was issued or not; andHMRC for not issuing a return to determine the actual figures for a source they were aware of, and doing nothing to close off the year re the estimated source coding adjustment.

Hopefully this could be dealt with fairly quickly through correspondence & with probably a fairly large degree of mitigation of any penalty

Thanks (0)