Tax Investigations: Medical Consultants

It is becoming increasingly apparent that HMRC are targeting medical consultants, typically high-earning NHS employees, also in receipt of private practice income. Although all aspects of the private practice income could well be under scrutiny, the real incentive as far as HMRC are concerned, is to challenge travel expenses in respect of journeys between home and consultation sites, and vice-versa.

Such expenses are commonly claimed as a business deduction, on the basis that to some degree or other, the home is a "base of operations" (a phrase used in the judgement of a related court case).  Not surprisingly, with tax liabilities likely to be well into the 40% bracket, HMRC are taking a robust approach to such claims.

These enquiries are currently being co-ordinated from HMRCs Edinburgh office, but are not in any way restricted to medical practitioners in that region. We can provide support to practitioners with such clients, whether in an enquiry situation, or reviewing a client's circumstances generally. Contact us for more details.