In 2017 HMRC launched their new computer system, Connect,which gathers information from various sources and then ties these up against tax returns submitted.
Presently over 95% of tax investigations are launched from this system rather than random investigations.
The sources of information are as follows: -
· Visa and MasterCard transactions; this is anonymised which if HMRC would like to they can have further information which details individual transactions where necessary.
· Land Registry Records to determine properties purchased and stamp duty paid. It also enables them to see whether the property is affordable for the taxpayer.
· DVLA; details of cars purchased and owned by individuals.
· UK and overseas bank accounts.
· Internal tax documents including Council Tax paid, VAT, previous tax investigations and earnings for an employer, including those you have worked for casually or on an ad-hoc basis. This includes any company benefits received,it can also access Child Benefits and maintenance payments for the CSA.
· On-line market places; websites such as E-Bay and Gumtree to enable them to determine any regular traders who are not declaring their income.
· Social Media; they can look at public social media accounts including Twitter, Facebook and Instagram.
If you have any form of income that you are not declaring please advise us as soon as possible