HMRC’s latest tax “amnesty”, the Tax Health Plan for medical professionals, is the third in less than a year. These are not strictly amnesties as the individual still has to make full restitution of tax due with interest and a penalty. The attraction is a penalty restricted to 10% and a “lite touch” disclosure framework.

The first amnesty, the Offshore Disclosure Facility, was announced in 2007 following receipt by HMRC of the names of foreign account holders from the High Street banks. The ODF was on similar terms as the THP and enabled the taxman to collect tax of £400m at a cost of £6m. HMRC then tackled over 300 other financial institutions and armed with further information launched the New Disclosure Opportunity in 2009. The NDO recently came to an end with the 12 March 2010 deadline for all filing and payment.

The number of NDO registrations, at 10,000, is disappointing for HMRC. One reason for this was the announcement of the Liechtenstein Disclosure Facility shortly after the NDO and giving the lie to the claim that the latter was the last beneficial opportunity to come clean. Taxpayers who can qualify will naturally choose LDF because of the relatively generous terms on offer: the LDF permits registration until March 2015 and will collect tax calculated at a composite rate, for only ten back years compared with the twenty of the NDO.

Having said that, those who are affected by the LDO are advised not to take too laid back an approach as there is always the possibility that HMRC will amend the terms to be less favourable. Although the clock starts ticking once registration is made - the taxpayer will have either seven or ten months to make a report of the irregularities, depending on the tax rates adopted - best advice is to register now to take advantage of the offer on the table. More information can be found at http://www.hmrc.gov.uk/disclosure/liechtenstein-disclosure.htm.

HMRC’s announcement that further amnesties will be forthcoming for other professional groups confirms their appeal for the taxing authority, regardless of uptake. The formulaic self-assessment approach with HMRC rubber-stamping the vast majority of disclosures is very attractive to an authority whose ongoing cuts in resources is at odds with its increasing need for revenue.

Medical professionals wishing to make a disclosure under the THP should register before 31 March 2010. Following registration, all duties must be paid and forms submitted by 30 June 2010. Further details can be found at http://www.hmrc.gov.uk/tax-health-plan/index.htm. Those who feel “left out” as they have not yet qualified for an amnesty can beat HMRC to it – a voluntary disclosure will still offer the chance of significantly reduced penalties.