HMRC have, for the last two to three years, been using a system called 'Connect' to identify tax evaders.
Connect accesses information from nearly 30 different sources, including the internet obviously, and then allows HMRC to search on individuals, specific addresses and specific telephone numbers allowing them to see links between individuals and companies, individuals and addresses,etc. It is very sophisticated and it is improving all the time.
Rather than choosing tax inquiries at random it allows HMRC to target specific individuals, specific industries and specific geographical areas.
P.S. Don't forget, the best way to avoid an inquiry is to submit your tax return and pay your tax before the deadline.
Connect accesses information from nearly 30 different sources, including the internet obviously, and then allows HMRC to search on individuals, specific addresses and specific telephone numbers allowing them to see links between individuals and companies, individuals and addresses,etc. It is very sophisticated and it is improving all the time.
Rather than choosing tax inquiries at random it allows HMRC to target specific individuals, specific industries and specific geographical areas.
P.S. Don't forget, the best way to avoid an inquiry is to submit your tax return and pay your tax before the deadline.
