2008, HMRC launched a new IT system for monitoring tax evasion called CONNECT, which has been an unprecedented success and brought in an extra £3 billion in tax revenue. CONNECT enables
HMRC to keep tabs on all sorts of information – including your bank details, past and present employment details, business material costs, profit margins, land registry information and more. This allows it to build a picture of your sector and detect perceived anomalies in returns or accounts. Many innocent taxpayers and business have been selected for an investigation even though they have done nothing wrong.
In 2012/13 the number of tax investigations increased from 119,000 to over 237,000 – in just one year.
Every year, HMRC investigates hundreds of thousands of individuals and businesses in the UK. It has the powers to do this at random, at any time, and everyone is at risk. Even if you have done nothing wrong, you are still at risk of an investigation, which can take months and cost thousands of pounds.
We are always pleased to talk and discuss on a no obligation basis how we might assist.