Tax drive to hit doctors

By Robin Stride

Moves to improve tax compliance could backfire and lead to some doctors cutting their commitment to the private sector, specialist medical accountants warn.

HM Revenue and Customs (HMRC) has announced:

➲ A tightening up of compliance issues for ‘wealthy individuals’. Accountants say most consultants would be regarded as wealthy in the taxman’s eyes;

➲The introduction of new technology to tackle the ‘hidden economy’ – such as a few consultants who accept cash;

➲An increasing attack on tax avoidance schemes. HMRC believes doctors and dentists are serial users of these;