Are you being honest with HMRC?
14th June 2013
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HMRC has a number of ways of checking whether people are cheating with their tax returns or are not being completely honest with the information they are submitting. 

Here are ten of them:

  1. Computer power – access to comprehensive data that assists with finding anomalies.
  2. Mystery shoppers – operate in disguise to root out suspicious behaviour.
  3. Informers – tip offs are a vital source of information.
  4. Faked numbers – means of testing the randomness of figures.
  5. Third party information – bulk information available from businesses or government agencies.
  6. Property raids – inspectors now have the power to raid homes of people they suspect of not paying tax.
  7. Local and online information – information from adverts on noticeboards in newsagents, stories in local papers and social networking sites such as Facebook and Twitter.
  8. Overseas property owners – dedicated ‘affluence’ unit checking that those owners are complying with the law.
  9. Offshore bank accounts –cross border co-operation with various agreements have now struck with these so called ‘tax havens’.
  10. Fear and guilt – HMRC advertising campaigns emphasising that the net is closing in as well as naming and shaming.


By David White a Partner in Charterhouse, based in Beaconsfield.



About the Author

David W

Member since: 16th May 2013

David White is an equity partner in Charterhouse a practising firm of Chartered Accountants based in Beaconsfield and Harrow. David is Charterhouse through and through having been with them for 30 years...

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