Informed Choice

Barristers are expected to find themselves in the crosshairs of the tax man as they continue their crackdown on non disclosed income sources and investment gains.

HMRC’s Tax Health Plan is a new initiative aimed at professionals to encourage them to get their tax affairs in order and keep them that way.

New powers take effect in April that will allow HMRC to force third parties to provide them with information on additional income sources received by self employed individuals regardless of the source or its legitimacy.

As of yesterday, Her Majesty’s Revenue & Customs are offering GPs and Dentists a 90% discount on normal penalties in exchange for them providing information on the totality of their income and investment gains as they are set to become the first profession to come under scrutiny from HMRC in this manner.

In an article on the new initiative in the Sunday Times it highlighted that a special Barrister Unit has been set up strongly suggesting they (and possibly their clerks) are the next profession on the hit list.

It does not mean, however,  the amnesty discount will be offered beyond the initial target of medical professionals.

This is the latest in a series of moves that the Revenue has taken in order to maximise its tax take. Last year saw the passing of a deadline offered to individuals with offshore bank accounts in which non taxed interest was being received and not disclosed.

With a large, and growing, budget deficit they will be keen to get every penny they can.

As the self assessment deadline looms it would certainly be wise for self employed barristers and partnerships to disclose all income sources (including investment income) to HMRC to avoid being hit with a penalty. More information on self assessment can be found at http://www.hmrc.gov.uk/sa/your-tax-return.htm.

If you would like assistance in ensuring your investments are as tax efficient as possible contact Chartered Financial Planner Andrew Neligan on 01483 274566 or emaillegal@icl-ifa.co.uk.