Thousands of UK doctors are facing unexpected HMRC tax demands - often for tens of thousands of pounds. Here is what happened and why you are not to blame.
Between 2010 and 2019, many locum doctors working in the NHS were placed with umbrella companies by their recruitment agencies. These umbrella companies promised tax-efficient payment arrangements that seemed completely legitimate.
HMRC holds individuals personally responsible for their own tax affairs, regardless of who arranged the payment structure.
Unfortunately, I did not know is not a legal defence when it comes to tax. Even if you were misled, you received the untaxed money.
Many of these umbrella companies have now dissolved, leaving no other party for HMRC to pursue.
HMRC can pursue backdated tax for up to 20 years, meaning old arrangements are still being investigated.
The Finance Act 2017 introduced the Loan Charge - a retroactive tax charge treating all outstanding loans from these schemes as taxable income.
This means doctors are facing tax demands on money they received years ago, often without understanding it was not properly taxed at the time.
50,000+
Individuals affected
£19,000
Median settlement
£500k+
Some demands exceed
11
Linked suicides
Medical training focuses on clinical skills - not financial literacy or tax planning
Junior doctors work exhausting hours - tax paperwork is the last thing on your mind after a 12-hour shift
International Medical Graduates - often unfamiliar with the UK tax system and trusted agency advice
Trusted agencies recommended these schemes - they were presented as HMRC compliant and completely legal
Poor record-keeping - many have lost payslips and P45s from years ago, making it hard to verify figures
The government has announced a new £365 million settlement package. The first £5,000 of all liabilities is being written off. 30% of affected individuals could have their entire liability written off. Most are seeing 50%+ reductions.
Now is the best time to resolve your situation.
Get Your Free Assessment