New campaigns
targeting VAT defaulters, private tutors and e-marketplaces will
be launched by HM Revenue & Customs (HMRC) over the next year.
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.
Connect alerts HMRC to previously invisible tax evasion by
matching a vast amount of HMRC and third-party data, enabling a
fast and focused response to tax evasion. It shines a light onto
previously hidden relationships, uncovering anomalies between such
elements as bank interest, property income and lifestyle
indicators before homing in on unexplained inconsistencies.
Before designing and launching the campaigns, the department will
seek input from interested parties.
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 that will be launched in 2011/12 will focus on:
* Those who provide private tuition and coaching. This addresses
the risk posed by all professionals who, because of their field of
expertise, are able to earn money from providing tuition and
coaching – either as a main or a secondary income. It covers
people providing private lessons, regardless of whether they have
a teaching qualification, and could include, for example,
fitness/dance/lifestyle coaches through to national curriculum
subject tutors and others.
* E-marketplaces. This will cover those who are using
e-marketplaces to buy and sell goods as a trade or business and
who fail to pay the tax owed. People who only sell a few items and
who are not traders are unlikely to be liable to tax and will not
be targeted by this campaign.
* Trades. This will build on HMRC’s plumbers’ campaign and give
an opportunity to another group of tradespeople to come forward
and declare unpaid tax.
Mike Wells, HMRC's Director of Risk and
Intelligence, said:
“We want to make sure HMRC listens to as many informed views as
possible for our future campaigns. We want the views and
experience of people and organisations outside the department to
play a fuller part in the campaigns that we design for customers.
“By being open about our areas of interest for the coming year we
hope to maximise that exchange of information and ensure we reduce
the tax gap and help customers pay what they owe.
“We will use the information we gather to pursue people who
choose not to use the opportunities we provide for them to put
their affairs in order on the best possible terms. It will be more
expensive if we come and find people, so I urge them to come
forward and disclose voluntarily.”
So far, more than £500m has been raised by HMRC from voluntary
disclosures and a further £100m from follow-up activity. Previous
campaigns have targeted offshore investments, medical
professionals and people working in the plumbing industry.
Information on campaigns for 2011, including how people can work
with HMRC to influence their development, will appear on the HMRC
campaigns pages shortly (http://www.hmrc.gov.uk/ris/hmrc-campaigns.htm).
Notes to editors
1. Plumbers and others in the heating industry who have
registered for the Plumbers Tax Safe Plan have until 31 August to
make arrangements to pay any tax interest and penalties due.
Further details can be seen at http://www.hmrc.gov.uk/trades-disclosure/index.htm.
2. HMRC targets VAT cheats: VAT cheats.
3. Those who believe the coming campaign activity may apply
to them and who want to come forward now and voluntarily disclose
can call 0845 601 5041.
4. Follow HMRC on Twitter @HMRCgovuk.
NAT 53/11
Issued by HM Revenue & Customs Press Office
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