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Some doctors and dentists are set to find themselves in the firing line of Her Majesty's Revenue & Customs (HMRC) as the governmental department attempts to crack down on people who have evaded or avoided tax repayments.

10 July 2012

Some doctors and dentists are set to find themselves in the firing line of Her Majesty's Revenue & Customs (HMRC) as the governmental department attempts to crack down on people who have evaded or avoided tax repayments.

The authority has launched a number of civil investigations against people working in the medical profession after it was suggested that system abuse is widespread.

In December 2010 an HMRC campaign uncovered a range of complex schemes used by medical professionals, including the use of accounts held overseas and payments made by insurance companies.

That crackdown managed to recoup around £13.1 million from more than 2,000 medical workers, with one doctor paying back more than £1 million and a dentist paying in excess of £300,000.

Around 1,000 cases are expected to be heard in this new investigation.

Speaking to The Daily Telegraph, a tax official said: "We are using the information to ask a number of people directly whether they should make a disclosure and have been clear about potential action HMRC can take.

“Following this, many have quickly decided voluntary cooperation is preferable."

Much of the money which the Treasury has managed to recoup came after people voluntarily forwarded their details and paid up what they owed.

However, HMRC say that around 700 of the cases they are launching now are linked with blatant tax evasion, which is against the law and is likely to result in criminal action being taken.

Danny Alexander, the chief secretary to the Treasury, poured scorn on the health professionals who have not fully paid their tax liabilities on the same day that doctors were striking.

He told The Times: "I think the public would be as dismayed to hear some doctors are evading tax as they were to learn they had appointments cancelled yesterday because doctors don’t think a £43,000 a year pension is enough."