HMRC to search internet for tax evaders

[SueEllen]

A lot of local paper small ads are online as well as in print and I suspect, this is who they are trying to target with this software.

I guess the trick would be to use a disposable mobile number and email address.

TBH, its all 'low hanging fruit' they are after whereas they really need to target the large scale tax avoidance schemes ala Vodafone or the Philip Greens of this world.

The "little people" can't afford armies of lawyers and get stressed by the threatening stance of Hector's minions.

So the "little people" will pay up with less cost to Hector.

[Clippy]

A lot of people doing tutoring etc will use still local small ads and postcards rather than the net. Watch out for suspicious looking people taking notes while looking at shop noticeboards.

PS Has anyone spotted the CCTVs they're hiding in toasters yet?



It probably will, although just publicising these things must bring in some tax.

A lot of local paper small ads are online as well as in print and I suspect, this is who they are trying to target with this software.

I guess the trick would be to use a disposable mobile number and email address.

TBH, its all 'low hanging fruit' they are after whereas they really need to target the large scale tax avoidance schemes ala Vodafone or the Philip Greens of this world.

[AlfredJPruffock]

They like to do both. Lots of little taxes instead of one big tax. Makes people think they're getting taxed less when they forget to factor in income tax, VAT (and VAT on fuel duty for petrol/diesel), savings interest tax, etc, on each pound they earn and either spend or save.

Now my advice for those who die - delcare the pennys on your eye
Cos Im the Taxman
And youre working
for no-one
but
me

Taxman - Mr Brown
Taxman - Mr Cameron

[PAH]

Rather than going to all this bother to collect more Tax - would it not be easier and less costly just to raise Taxes for the masses ?

They like to do both. Lots of little taxes instead of one big tax. Makes people think they're getting taxed less when they forget to factor in income tax, VAT (and VAT on fuel duty for petrol/diesel), savings interest tax, etc, on each pound they earn and either spend or save.

[Sysman]

I wonder if Paypal comes under jurisdiction for HMRC being able to request details of all customer records, so in effect is just an online banking system that HMRC can reconcile against their other sources of information.

If not, maybe I can get my next contract paid into a Paypal account and declare myself offshore.

"I don't trust PayPal with my money" is the answer to that one.

[PAH]

Paypal have a credit card you can charge up with a positive balance straight from the account, perfect for people who have reasons to not deposit cash in a bank account.

I wonder if Paypal comes under jurisdiction for HMRC being able to request details of all customer records, so in effect is just an online banking system that HMRC can reconcile against their other sources of information.

If not, maybe I can get my next contract paid into a Paypal account and declare myself offshore.

[AlfredJPruffock]

Scaremongering I suspect.

Mind You - rather than going to all this bother to collect more Tax - would it not be easier and less costly just to raise Taxes for the masses ?

[PAH]

It probably will, although just publicising these things must bring in some tax.

Yep. Much like IR35, they're hoping to scare people into volunteering more tax.

To prove this tactic works I remember (in 2000 IIRC) a fellow contractor writing a 5 figure cheque to pay his IR35 dues without so much as getting his contract checked, so purely voluntary.

We were on the same project so by the fact I have not been 'caught' for that work, and it being ~11 years ago I don't expect a knock on the door about it now (cut-off is 6 or 8 years for HMRC to start an investigation IIRC), all that cheque paid for was his peace of mind.

I suppose it's like the lottery in reverse. Low odds on anything happening but when it does it might be a big one. At least with the lottery you know all the rules before you play the game. Not quite the same with IR35.

[gingerjedi]

An easier solution would be to compare bank accounts to tax declarations, as most internet selling requires going through a bank. This is something I thought they already did.

Paypal have a credit card you can charge up with a positive balance straight from the account, perfect for people who have reasons to not deposit cash in a bank account.

[xoggoth]

A lot of people doing tutoring etc will use still local small ads and postcards rather than the net. Watch out for suspicious looking people taking notes while looking at shop noticeboards.

PS Has anyone spotted the CCTVs they're hiding in toasters yet?

turns out to be a turkey like many government IT projects

It probably will, although just publicising these things must bring in some tax.

[PAH]

Seems a bit inefficient, trying to determine sellers from often disguised user names, particularly on ebay, if they're resorting to web bots than asking eBay for a list of traders and their sales figures.

An easier solution would be to compare bank accounts to tax declarations, as most internet selling requires going through a bank. This is something I thought they already did.

Much harder to determine cash based transactions as, going from people I know that run mainly cash businesses, only a fool doesn't declare a realistic portion of the earnings. So the hard part is determining if a significant portion of the cash remains undeclared.

I suppose this system will keep some IT bods in work, even if it turns out to be a turkey like many government IT projects.

[Sockpuppet]

Its probably there to target ebay shops or people trading / selling without declaring tax. But remember kids this is the same computer system that can't calculate tax correctly yet.

[PAH]

My accountant sent me a link to this in the monthly newsletter they send out.

Call me cynical but I think this is about as likely as those TV licence detector vans you have never seen.

Though it will keep some plebs in their public sector non-jobs.

News : NDS

HMRC will use cutting-edge tools such as “web robot” software to search the internet and find targeted information about specified people and companies. Using the software, the department can pinpoint more accurately people who have failed to pay the right tax. The “web robot”, used with the department’s Connect computer system, also helps find people who are trading without telling HMRC.

AtW's probable comment: Behaviour like this from the govermin is only likely to encourage more internet sockies.