Business News

November 2010

Mileage claim uncertainty set to continue

There is no end in sight to the uncertainty surrounding business mileage claims by Hospital Consultants, after a Tribunal hearing, which it was hoped would have clarified the situation, was cancelled at the last minute.

The hearing, on 4 November, was due to consider a Consultant’s business mileage and Capital Allowance claims, but the individual concerned withdrew at the last minute after striking a deal with HM Revenue and Customs (HMRC).

It was hoped that the outcome of the case would provide a clear indication of where a consultant should be considered to be based for the purpose of working out expenses, providing a more current precedent than the Newsom v Robertson case used by HMRC at present.

Many tax advisers had put similar cases on hold, pending the outcome of a ‘lead’ action, but there are not thought to be any more such cases pending in the near future.

It may be that HMRC will now look to pursue some of these stalled cases and bring them to a conclusion, so we may get a precedent in time. However, this also means that Consultants who have been trying to delay making payments could face renewed pressure to pay up, including possible penalties.

HMRC has already been increasing the number of enquiries affecting senior medical personnel, not just Consultants, and it is likely that these could increase further in the coming months.

For more information or advice, please contact us.