HMRC has a wide range of access powers contained within the Taxes Management Act 1970 and these enable them to obtain information on a wide range of transactions and income, which include the following:
- Details of particular types of boats & planes
- Details of licenses to sell beer, wine & spirit
- Details of grants
- Auctioneer returns & chattels sold
- Chargeable event gain certificates from Insurance Companies
- Details of bed & breakfast/rental payment to landlords
- Details of sale/purchase of properties (via the Land Registry)
- Full vehicle histories
- Hackney carriage/taxi licence holders
- Details of interest received from Banks etc
- Details of shares sold
- Details of property held abroad
- Payments to BUPA and other medical insurers
This is by no means an exhaustive list but HMRC now have a computer system known as DARM which is their Debt & Return Management system which also cover’s employers. So late payment, will alert HMRC and could be a trigger for a tax enquiry.
It is understood that HMRC offices still make routine observations such as looking at the exterior of businesses and private homes. Information is also passed interdepartmentally via Employer Compliance Visits by HMRC.
The Inheritance Tax arm of HMRC also obtains information from the estates of deceased individuals and financial information is passed to the income tax districts to see if the IHT return correlates to previous years self assessment tax returns filed.
HMRC also have an automated risk analysis & profiler system which risk assesses over a number of different areas based on the type, geographical location, employer and even tax agent!
So, lots to consider and watch out for here, if you do not wish to be the subject of an HMRC enquiry.
If you would like our help to understand the implications in more detail for your specific situation, call us today on 02394 003600 or contact me on email@example.com.
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This is Vicky, signing out for now and remember – behind every good person and business is a GREAT Accountant!