HMRC vs Dentists…let the battle begin!

The 31st of January has passed and your tax return has been submitted and you have paid your hefty tax bill – Again.

In good or bad times, paying your tax is one of life’s certainties. However, now more than ever as public spending rockets, HMRC will be after every penny they can get from you, the hard working dentist.

In Monday’s Panorama documentary it was made clear the new US government would be going after tax havens to disclose information about account holders. The Cayman Islands was in particular highlighted as a major tax haven for US citizens, showing one law firm that had over 18,000 companies registered at its small offices (Maple and Calder). In a similar vein, the UK government now more than ever is after information about people who have hidden money in tax havens or who they believe have paid insufficient tax.

HMRC New Powers - Will they be knocking at your door?

From April 2009, the Finance Act 2008 will be put into action. This may not mean much to you, but rest assured this means a lot to HMRC. From April, HMRC investigators will be using the legislation detailed in Schedule 36 of the Finance Act to go after more tax!

Section 10 of Schedule 36 (visit here to read it in full) states that HMRC now has the power to visit to your business premises, without notice, to check your tax position. With the mess the Public finances are in, Gordon and Alistair need more money, this is just one of the many means they will be going after it!

If you have not already, make sure you take out tax investigation insurance, as next time you get a knock at the door, it may well be an unwelcome tax inspector!