Following an investment of over £100m, a new supercomputer called Connect means the HMRC will have access to a lot more information about the tax payer than they typically would – information that goes far beyond the details we submit on tax return forms.
Connect allows the HMRC to gather details from a number of sources, including your bank and a wide range of financial organisations, such as PayPal. If that’s not scary enough, it goes even further, assessing our digital footprint – looking at our internet activity to identify whether or not there are any inconsistencies with the numbers we declare to the HMRC, and our spending on websites like Airbnb and eBay. If you spend more than you earn, then a red flag is raised against your name.
In fact, going one step further, a change in law now means any tax payer who does not declare any income from overseas and earnings from offshore accounts is now committing a criminal offence. It seems ignorance won’t be tolerated either, with financial penalties in place for anyone providing inaccurate data or forgetting to include vital information such as student loans.
At £100m, Connect is not cheap, and those behind it will be looking to make a serious return of investment.
Remember, the HMRC’s knowledge now goes beyond what we tell them, they have access to more information and data than ever before – even going as far as our spending habits – so it’s time to take extra care when you next fill out your tax returns. Or if you’re like thousands of tax payers across the UK who are now taking advice from professional accountants from Melton Mowbray to Manchester, SRB Associates (Leicestershire) Limited are now offering expert advice on every aspect of your tax returns. We can ensure you’re not committing a criminal offence as well as helping you pay less tax, too.