HMRC have announced that they will be launching new campaigns over the next year targeting VAT defaulters, private tutors and e-marketplaces.
HMRC will use more IT, such as 'web robot' software, to search the internet and find targeted information about specified people and companies. Using the software, HMRC feel that they can pinpoint more accurately people who have failed to pay the right tax. The software, used with HMRC's Connect computer system, also helps find people who are trading without telling HMRC.
The Connect computer system alerts HMRC to previously invisible tax evasion by matching a vast amount of HMRC and third-party data. It can identify previously hidden relationships, uncovering anomalies between such elements as bank interest, property income and lifestyle indicators before homing in on unexplained inconsistencies.
HMRC announced last month that a campaign targeting VAT rule-breakers trading above the £73,000 turnover threshold but who have not registered for VAT will be launched in the summer.
Other campaigns to be launched in 2011/12 will focus on:
· those who provide private tuition and coaching
· e-marketplaces, which buy and sell goods as a trade or business
· trades, which will build on HMRC's plumbers' campaign and give an opportunity to another group of 'tradespeople' to declare unpaid tax.
For assistance and advice with regard to VAT, please contact Wallace Crooke Accountants either by phone or email.
Tel: 01922 612309