UK doctors and dentists receiving a letter from HM Revenue and Customs, the UK tax authority, about its Tax Health Plan - an amnesty for medical professionals – should act fast, warn accountants and business advisors PKF.

Only one in ten will get such a letter; according to the firm’s tax investigations partner John Cassidy: “The reason is pretty obvious, HMRC is only writing to those that it suspects have not declared all their income – and it probably has the evidence to prove it.”

HMRC has the power to request tax related information from third parties in bulk. To support the THP it has already obtained a large amount of information from the NHS and insurance companies on payments made to individual doctors and consultants.

Mr Cassidy says: “Armed with this information, HMRC could launch tax enquiries and carry out other enforcement activities against individuals who do not co-operate. So if you receive a letter from the taxman about the THP, you can pretty much guarantee you will be investigated if you do not use this amnesty to come clean on unreported medical income.”

Recipients have until 31 March 2010 to notify HMRC that they wish to use the THP amnesty. Those using it will need to submit a completed disclosure pack and a full payment to settle their arrears by 30 June 2010.