HMRC Enquiries, Penalties & Late Returns for Doctors & Healthcare Professionals

What should I do about an overdue tax return?

Many doctors and healthcare professionals must file a Self Assessment return: you need one if you have untaxed income such as private, locum or self-employed work. A high PAYE salary alone does not require Self Assessment for 2026/27; check HMRC's current criteria and any notice to file. The online filing and payment deadline is 31 January after the tax year ends. Under the non-MTD rules, late filing normally triggers an initial £100 penalty, with further penalties for longer delays. A different regime applies from the tax year you join MTD for Income Tax.

Help with this question: Self Assessment Tax Returns for Doctors & Healthcare Professionals

Can a penalty be appealed?

HMRC penalties can be appealed if there is a valid reason for the non-compliance. You must generally lodge an appeal within thirty days of the penalty notice date. Success often depends on providing clear evidence to support your case. We can assist in communicating with HMRC to resolve these disputes.

What is a reasonable excuse?

A reasonable excuse is something unexpected or outside your control that stopped you from meeting a tax obligation. Examples might include serious illness, bereavement, or unforeseen postal delays. HMRC evaluates each case based on whether a person took reasonable care. Simple forgetfulness is typically not accepted as a valid excuse.

Can I agree a payment plan with HMRC?

HMRC may allow you to settle tax liabilities through a Time to Pay arrangement. These plans are generally negotiated based on your specific financial circumstances and ability to pay. It is important to contact HMRC as soon as you realise you cannot pay in full. We can help you propose realistic payment schedules.

What happens in an HMRC enquiry?

An HMRC enquiry involves a formal review of your tax returns to ensure all figures are reported correctly. They may request supporting documentation such as invoices, bank statements, and clinical records. The process can range from a simple query to a full audit. Medical.Accountants manages the correspondence to ensure a professional resolution.

How quickly can you catch up late returns?

Timing depends on the scope of the work, completeness of your records and any information needed from HMRC, NHS Pensions or your previous accountant. We confirm the documents required and agree a realistic timetable before starting. Onboarding is separate from completing the review or filing outstanding returns; neither has a guaranteed turnaround.

Will HMRC charge interest?

HMRC charges interest on any tax paid after the statutory deadline. This interest is calculated from the date the payment was due until the date it is received. The late filing penalty is typically £100 for an initial delay. Making payments on account by 31 January and 31 July helps avoid these costs.

Should I tell HMRC about undeclared income?

Proactively disclosing undeclared income to HMRC is generally advisable to minimise potential penalties. Voluntary disclosures often result in more favourable treatment compared to HMRC discovering the omission themselves. This process involves calculating the tax, interest, and any applicable penalties. We guide healthcare professionals through the disclosure facilities available.

What happens if I cannot pay my tax bill on time?

Failing to pay your tax bill on time can result in interest charges and potential surcharges from HMRC. It is important to communicate with HMRC as soon as possible to discuss payment options. A £100 late filing penalty applies if the Self Assessment return is not submitted by 31 January. We assist clients in managing their tax deadlines.

Can I set up a payment plan with HMRC?

HMRC may allow you to set up a Time to Pay arrangement if you are unable to pay your tax in full. This plan allows you to clear your debt through instalments over a set period. You should request this before the payment deadline to minimize penalties. Medical.Accountants can provide the necessary financial figures to support your application.

How does the mortgage interest restriction work?

Tax relief on residential property mortgage interest is restricted to the basic rate of income tax. Landlords cannot deduct mortgage interest from rental income to arrive at taxable profit. Instead, a tax credit is applied to the final tax liability. This restriction applies to individuals and partnerships, but not usually to limited companies.

Help with this question: Mortgage References & SA302s for Doctors & Healthcare Professionals