Hospital Consultants at risk from HMRC
Our tax investigation insurance providers have made us aware that a number of Hospital Consultants are being investigated by HMRC. In each case, HMRC reviewed the motor and travel expense claims and refused to accept the home as a ‘base of operations’, even when a consulting room is at the home and regularly used to see patients.
As a consequence, HMRC are seeking to disallow any journeys from or returning to the home. In the cases they have seen, the Inspectors are suggesting token business use adjustments and we understand 15 enquiry cases have already been selected to go through the Tribunal system, in order to secure a precedent in HMRC’s favour. Clearly, if HMRC win any of these cases, this may well impact upon other professions where business/private mileage is incurred.
Up until now, the bulk of the cases have been instigated from a ‘pilot’ team in Scotland, but the yield achieved has encouraged HMRC to roll out the ‘pilot’ into Hospital Consultants nationwide.
If you would like to discuss this further or would like to discuss tax investigation insurance more generally, then we would be pleased to hear from you.
Please feel free to contact either Louise Wickens on 0118 955 1034 or Annette Warren on 01635 553 240.