In recent press releases and public statements HMRC have made no secret of the fact that they intend to crack down on people evading tax. Recently it has been the plumbing industry that has felt the heat, but HMRC have now announced other target groups that they have in their sights.
HMRC have announced that they will use “cutting-edge tools such as “web robot” software to search the internet and find targeted information about specified people and companies”. The web robot used in conjunction with HMRC’s Connect computer means that HMRC can pinpoint more accurately people who have failed to pay the right tax. Connect allows HMRC to clamp down on what was previously “invisible tax evasion” by matching a vast amount of HMRC and third-party data. It shows up hidden relationships and uncovers anomalies between such elements as bank interest, property income and lifestyle indicators.
HMRC intend to seek input from interest parties before launching their next campaigns but at the moment they are intending to focus on the following later in 2011/12:-
1. Individuals who provide private tuition and coaching. This covers people providing private lessons, regardless of whether they have a teaching qualification and could include fitness and lifestyle coaches through to subject tutors and others.
2. E-marketplaces. This will cover those who are using e-marketplaces to buy and sell goods as a trade or business and who fail to pay the tax owed.
If you would like to discuss your own situation further or perhaps put your tax affairs in better order or you would simply like more information on the above then please give us a call on 01733 371180.