HM Revenue & Customs (HMRC) has a new £100m weapon to help identify individuals who may not be declaring all of their income, and therefore not paying enough tax.
The new supercomputer ‘Connect’ uses information from a range of Government and website sources to create a profile of a taxpayer’s total income, as opposed to relying on the information on the individual’s tax return.
Where the information is different, the account will be flagged and could become the subject of an investigation by HMRC, and as we believe that the Connect system now generates around 80% of HMRC’s tax investigations, you will appreciate how important it is that you declare all income now.
Our Private Client Tax team has a good deal of experience in dealing with disclosures, and achieving reduced penalties for our clients. Therefore, if you have received a letter from HMRC suggesting you have undeclared income, and you would like advice, please contact us on 01788 539000.