What do the HMRC Know About Me?

What do the HMRC Know About Me?

They are very well “connected’ at the press of a button via their Connect Computer System!

What is Connect?

Connect is an expensive and sophisticated computer software system introduced in 2010 and kept quite secret by HMRC. Connect is a very powerful data tool central to HMRC’s work to close the tax gap and tackle evasion and avoidance. It uses for example the following.

• Tax returns (including VAT, PAYE, income tax and corporation tax returns).
• Bank accounts and pensions.
• Credit reference agencies.
• Credit and debit card accounts.
• Online payment providers such as PayPal.
• Foreign tax jurisdictions (including treaties & automatic exchange agreements) & the common reporting standard.
• Government agencies such as Companies House, Land Registry & Border Agency.
• Online social networking.
• Property websites such as Zoopla and Rightmove.
• Amazon, eBay, Gumtree and similar sales websites.
• Google Street View.
• Council tax records.
• DVLA records.
• DWP records.
• Electoral roll.
• Insurance companies.
• Charities Commission.
• Flight sales and passenger information.

HMRC can now gather information from banks, other lenders and even platforms like Airbnb, Petplan etc insurance, anyone paying or receiving commission, to build a full picture of you, your income and spending. It can also access Land Registry records to see whether any properties have been purchased or sold and determine whether you can afford such properties (from mortgage applications too) based on your declared income.

This means that now, the preliminary work that once may have taken HMRC investigators weeks or even months can be completed in a matter of seconds and compared to your tax returns ( or lack of them) in order to launch targeted, accurate and very fruitful investigations into your affairs.