We have recently become aware that a number of Hospital Consultants are being targeted by HMRC in respect of their Motor Expense claims. In each case, HMRC reviewed the motor and travel expense claims and refused to accept the home as a “base of operations”, even when a consulting room is at the home and regularly used to see patients.

As a consequence, HMRC are seeking to disallow any journeys from or returning to the home. In the cases that we are aware of, the Inspectors are suggesting token business use adjustments and we understand 15 enquiry cases have already been selected to go through the Tribunal system, in order to secure a precedent in HMRC’s favour. Clearly, if HMRC win any of these cases, this may well impact upon other professions where business/private mileage is incurred.

We understand the majority of cases have been investigated from a “pilot” team in Scotland, but the initial yield projections have encouraged HMRC to roll out the “pilot” into Hospital Consultants nationwide.

Please contact either Greg Penfold or Andrew Fenton if you have any concerns or wish to discuss any of these matters further.