DDU dento legal adviser, Leo Briggs said: “With the 31 January deadline for submitting self-assessment tax returns, it’s likely that HMRC has been at the forefront of many people’s minds. Once you have completed your return HMRC may ask for further information, such as patient records or invoices containing patient's names and addresses to confirm earnings. It's at this point dental professionals often pick up the phone to the DDU to ask what they are able to disclose."
“Schedule 36, Part 1, of the Finance Act 2008 gives tax inspectors legal powers to obtain documents relating to private income, to help them check a tax payer's position. However, the onus is on the tax inspector to prove that the information requested is necessary.
“When providing information, dental professionals should only disclose relevant material, not the whole dental records. In most circumstances it will be enough to provide anonymised versions of documents, therefore preserving patient confidentiality. If tax inspectors say they need identifiable patient information, it is up to them to make the case for it and dental professionals may want to seek advice from a tax accountant or their dental defence organisation.
“If, after getting advice, you are persuaded that it is reasonable to provide identifiable patient information, the question of consent arises. Although patient consent may not legally be necessary, in the interests of maintaining a professional relationship with the patient, the DDU advises dental professionals to contact the patient first before divulging the information. This is provided that it is practical to do so and does not undermine the purpose of the tax inspector seeking the information.”
In recent years, HMRC has conducted a series of campaigns aimed at health professionals and has produced guidance on understanding tax liabilities. According to HMRC, this approach generated more than £10 million in unpaid tax and penalties from 1,500 medical professionals, including a dentist who paid more than £300,000.
Members of the DDU who are unsure about their current or future tax obligations, particularly those who have not previously had to submit a return or whose tax status has changed, can find tutorials on the DDU website. Developed in collaboration with HMRC, the tutorials cover a range of tax information including self-assessment guidelines, allowable business expenses, taking on staff and VAT.