In the last year HMRC have increased their raids on business premises by 28% and that’s a 53% increase over 5 years.
761 properties were raided last year!
HMRC possesses powers to raid premises with a search warrant granted by a judge or magistrate.
During August 2016 (Consultations end in October 2016) they issued 3 new consultations:
Tackling the hidden economy: Sanctions
Tackling the hidden economy: Extension of data – gathering powers to Money Service Businesses
HMRC have always been keen to seek out those who fail to register for tax, since 2011 they have been using CONNECT.
According to Accounting Web:
It uses a mathematical technique to search previously unrelated information and detect otherwise invisible ‘relationship’ networks. Using Connect, HMRC sifts through information on property transactions at the Land Registry, company ownerships, loans, bank accounts, employment history, voting and local authority rates registers and compares with self-assessment records to spot taxpayers who might be under-declaring or not declaring income.
Connect has made links between tax records and third party data from hospitals, pharmaceutical companies, insurers and even gas SAFE registrations. DVLA records and the shipping and Civil Aviation Authority registers help identify owners of cars and planes who declare income that the computer suggests cannot support such purchases.
If you have undeclared tax now would be a good time to tell HMRC.