TPTW - HMRC search internet for tax avoiders

[taggyboy]

I'm not sure if this is classified as TPTW but thought I would give it a go.

I stumbled upon an article about tax and vat avoidance and in it they talked about HMRC using "web robot" software to search the internet and find information about people and companies avoiding tax and vat.

The move is part of a wider crackdown on tax avoidance as the Revenue looks to plug a huge tax gap.

Just wondered on your views! Do you think this is how they detect those working from home or mobile and not registering business properly?

 

[izzidoll]

Well as someone who has always kept on the right side of the taxman, and really should be sitting doing her accounts and not geeking right now, then I don't see what is wrong with this.

If you are earning money then you should be paying your taxes.

This is yet another thing that seperates the professional business from the hobbyist.

Too many people do courses in Beauty, Nails & Hair as an add on to their fulltime job, making cash in hand money at night from the 'beauty business' and failing to register this with the tax man.

To be honest I would not be surprised if the taxman snoops about here quite regularly.
I am quite sure they check out all the Facebook pages!

 

[persianista]

They have been doing this for ages. If you advertise mobile, you will initially get sent a tax return. If you ignore, or put a tiny amount down, you get investigated. Likewise if you work cash in hand.
They can catch you from an IP address too.

Having had a full tax investigation, I have a healthy respect for the revenue. They really know their stuff, and can catch people out so easily.

For salons, they use perameters, eg, you say you do 10 clients per week, but buy a litre of shampoo. They will conclude you are fiddling cash, and can work out roughly how much from your stock use.

If you say you do 5000 clients a week, and buy a litre of shampoo, they will know you are laundering cash through a salon.

They investigate from all angles, and believe me, they take you apart.

 

[Lucy-Jayne]

I suppose it would all depend on what the 'web robot' was searching for...... I'd be interested to know what would flag up.

Perhaps searching the internet for advertising and then searching their systems to see if those people are actually registered with HMRC. If I was them I'd check everyone on yell.com and groupon against their records!

I think it's a good and fair idea. I read something in a trade magazine a few days ago about how they're checking out everyone who should be paying VAT and potentially fining them 100% of what they owe for not registering when they should have done.

 

[tigi]

I am glad they do! we all have to pay our taxes, I cant stand people who think they are somehow special or better then everyone else and avoid doing so.

tigi

 

[taggyboy]

Yep I totally agree with you all. I suppose the "web robot" can have specific data added for any parameters and presume this is similar to internet robots that search for website information to get you known on the www.

I have absolutely no doubt that facebook is searched regularly and so it should, I say

 

[TracyS]

I have no problem at all with them doing this but I would also like to see them putting as much effort into closing the loopholes large corporations get through in order to avoid tax. No-one should be exempt from paying what they owe.

 

[naturalnails]

I am glad to read this.

There are many, many people buying hazardous items outwith the UK and importing them without paying proper import duties.

There are also many people in lots of walks of life who avoid paying their dues because they think if it is a hobby they dont need to pay tax - that is what their real job is for.

I come across this every day on Facebook as I am a member of a small business network and we try to educate people about being legal.

There are also many people who sell items online and dont comply with the rules and regulations for selling online.

But hey dont get me started on Hallmarking LOL.

 

[elliebee]

I guess this is the Inland Revenue finally catching up with 21st century technology!

When I worked for HMRC (many moons ago) we would go through the small ads in local newspapers to find individuals who were advertising their services.

I am all for this type of thing.

As someone who is legitimately trying to run a business with all associated costs (proper training, salon insuance, TAX & NI etc) I find it infuriating that I am expected to compete with the benefit bandits.

Although I do not see them as direct competition (as we are targeting a completely different market) I am fed up of hearing "you charge HOW MUCH"!

Good on Mr Taxman. Go get 'em.....

 

[Zo Zo]

Thank you Taggyboy for starting a TPT

Let's hope it's scares the hobbyists into registering as self-employed!

 

[shedunlop]

I am all for this, although I am not sure if they can cope with all the one's they have at the moment with staffing cuts.

I do wish they would do similar stuff with benefit fraud. There are so many people now on benefits who are not entitled to them because of working and not declaring. I have had several clients do the same and find it very hard to swallow having struggled as a single parent for many years, working to show my son that it is a better option. I would arrive home after a 12 hour day to see my neighbour, able bodied, sitting in the garden, fag in gob with a can of Stella waiting for the takeaway to be delivered. She didn't see why she should work.

If everyone, including politicians and bankers did things by the rules the country would not be in quite so much of a mess. :green:

 

[HWilliams]

I am all for this, although I am not sure if they can cope with all the one's they have at the moment with staffing cuts.

I do wish they would do similar stuff with benefit fraud. There are so many people now on benefits who are not entitled to them because of working and not declaring. I have had several clients do the same and find it very hard to swallow having struggled as a single parent for many years, working to show my son that it is a better option. I would arrive home after a 12 hour day to see my neighbour, able bodied, sitting in the garden, fag in gob with a can of Stella waiting for the takeaway to be delivered. She didn't see why she should work.

If everyone, including politicians and bankers did things by the rules the country would not be in quite so much of a mess. :green:

I quite agree and this government fraudulent expense claims thing is awful!

I registered self-employed within the time stated and still file a tax return even though I was told by HMRC that I didn't need to and always get it sent back to me lol but it gets filed away in case one day they want to check on things then I know that I have all my paperwork in order

 

[Ruth Mills]

Just as long as they don't bungle it and subject someone who is totally kosher with their book-keeping to an unnecessary and tedious tax investigation.

 

[tigi]

i give all my book keeping to my accountant. i just feel its worth every penny and boy do i hate accounts!

 

[elliebee]

i give all my book keeping to my accountant. i just feel its worth every penny and boy do i hate accounts!

Ditto! I am a qualified book-keeper and ex HMRC and I still have an accountant! She is worth every penny (and obviously I keep impeccably tidy records)! :lol:

 

[taggyboy]

Thank you Taggyboy for starting a TPT

Let's hope it's scares the hobbyists into registering as self-employed!

Cheers for the comment, I hope so to

 

[taggyboy]

Much appreciate all your comments on this thread

 

[SalonSoGood]

They have been doing this for ages. If you advertise mobile, you will initially get sent a tax return. If you ignore, or put a tiny amount down, you get investigated. Likewise if you work cash in hand.
They can catch you from an IP address too.

Having had a full tax investigation, I have a healthy respect for the revenue. They really know their stuff, and can catch people out so easily.

For salons, they use perameters, eg, you say you do 10 clients per week, but buy a litre of shampoo. They will conclude you are fiddling cash, and can work out roughly how much from your stock use.

If you say you do 5000 clients a week, and buy a litre of shampoo, they will know you are laundering cash through a salon.

They investigate from all angles, and believe me, they take you apart.

I have recieved a letter from the tax man and a friend has said from the wording they are going to do a full investigation. A third party has said they are reporting me out of spite and it could have happened.

I cannot find anything online to tell me what happens in a tax investigation. Lots about how to avoid it, and general, but people that have been through one and gone into detail about what happens I really could do with.

Please could you tell me if they go through every bank account, talk to my partner, talk to my customers, and what they already know when they knock on the door.

Found this thread through google. If someone wants to tell me and not here please PM me.

 

[persianista]

I have recieved a letter from the tax man and a friend has said from the wording they are going to do a full investigation. A third party has said they are reporting me out of spite and it could have happened.

I cannot find anything online to tell me what happens in a tax investigation. Lots about how to avoid it, and general, but people that have been through one and gone into detail about what happens I really could do with.

Please could you tell me if they go through every bank account, talk to my partner, talk to my customers, and what they already know when they knock on the door.

Found this thread through google. If someone wants to tell me and not here please PM me.

You have to give them all your paperwork, credit card slips, appointment books, bank statements, etc.
They then ask you a series of questions about both your business and personal expenditure.
It usually lasts about a year. Your accountant should deal with most of it for you.
Just make sure your accounts are correct, and personal accounts are clear of anomalies.

 

[SalonSoGood]

A year! Thank you for replying.
Is that how long it takes them to find all the information? Or is that because they are so thorough?

Will I have lots of interviews?

I have kept every bit of paper that I should have and probably a bit that isn't necessary.

Do you know if they start asking your customers questions?
I am starting to make more money and am using more expensive products as my clients are earning more and can afford better.

What a twenty year old can afford and what a twenty-five year old can afford are different.

Just any information about an investigation to take the fear out of it, and let me know what happens is so helpful. and probably good for anyone reading.

Thank you so much.