Protect yourself today
Could this be you?
You might be chosen for an enquiry due to the nature
of your business, where you live, the property you rent
out or perhaps because HMRC has decided to target your
particular profession.
HMRC has a computer called Connect which stores all
of the information the taxman collects on businesses and
people. Specialist analytical experts then trawl through
all the data to identify potential risks.
However, a proportion of enquiry cases are selected
completely at random.
Reasons to act now
One
HMRC is determined to deliver more money from compliance activity. It is under intense pressure from both the government and MPs of all parties to pursue all tax which is due under law.
Two
Over 22bn lines of data are already held by HMRC. That figure is likely to increase rapidly now that tax authorities around the world are
starting to share information under the Common Reporting Standard.
Three
HMRC can now access all credit and debit card payments to find out the number and value of transactions completed by a specific
trader. For example, if a cash based business has declared a turnover of £80,000, with card transactions amounting to £75,000, HMRC
will want to know whether £5,000 of cash is an accurate record.