HMRC unleash ‘Connect’ computer to target tax evaders

By Chris Dawson January 9, 2017 - 5:38 pm

HMRC’s powerful new “Connect” system is about to be unleashed on the general public zeroing in on anyone who may have failed to declare income they should be paying tax on.

With the deadline of the 31st January rapidly approaching, HMRC probably already know if you’ve been selling on eBay, renting your room out with Airbnb and even if you’ve been paid interest by your bank or building society.

Having invested millions in Connect, HMRC have been collecting information from Government departments, financial institutions (including traditional banks and peer to peer lending systems) as well as scanning eBay, Etsy and Amazon to see who’s trading there.

HMRC’s Connect is even scanning Land Registry records to see how much people are paying for property. If it appears unlikely that you could afford to pay for your house based on the income you declare than that alone would be enough to set alarm bells ringing and questions to be asked. Likewise HMRC can see anonymised information on Visa and Mastercard payments so they’ll have a rough idea if you’re spending way beyond the income you’re supposed to have.

It’s worth noting that the previous Chancellor George Osborne put in a provision to enable consumers to make £1000 profit selling on marketplaces before they had to declare themselves as a business and another £1000 renting out their spare bedroom. This allowance doesn’t kick in until the new tax year starts in April 2017 though, so any earnings up until now should be declared and tax paid.

Not a lot will happen for the next three weeks until the 31st January filing deadline passes, but after then expect to hear of letters from HMRC dropping onto doormats across the country.

If you think that you owe more tax than you’ve currently declared it’s not too late to act, you can still file your earnings before the 31st of January and pay any tax owing to avoid the possibility of fines or worse.

  • Ken Dodd
    9 months ago

    whos going to administer and process all the dodgers
    how will the courts and prisons cope with the influx
    its like saying your going to prosecute every driver that breaks the speed limit
    and no business on the planet pays all the tax they think they owe

    • Jimmy Carr
      9 months ago

      Really ? a Post on tax Evasion and the first reply is from Ken Dodd! Should. Too Funny

    • 9 months ago

      Does anyone even thing this new computer detection system is true? Surely just a PR ruse?

      Giddy up!

    • Gary Barlow
      9 months ago

      Yes, the ‘Connect’ department is located next to the TV detector van department.

    • Karl
      8 months ago

      It is no wonder people in the UK dodge taxes, they are everywhere and small businesses get nothing for their hard work. 20% TAX, 20%VAT, TV licence TAX, High car TAX, High fuel TAX,and many more. When will somebody see sense? I will never pay what they want until it is a reasonable amount, below 10% like most other countries. So Government, get over yourselves and get real.

  • ifellow
    9 months ago

    Shame it can only catch UK dodgers.

    How about the chinese/HK ones we have all been banging on about for the last 5 years ?

  • Whirly
    9 months ago

    haha. love the comments.

  • sam
    9 months ago

    Sounds like another scaremongering tactic in the hopes that some people will ‘offer up’ their income and report it to avoid being penalised.

    I doubt anyone renting a room out or selling the odd bits on eBay as a side-line is going to be contacted by HMRC

  • Joe
    9 months ago

    This ‘story’ is trotted out by HMRC on a regular basis, new sophisticated software is being rolled out to catch tax dodgers. All in the hope of scaring people into becoming honest for fear they’ll get caught out.

  • Al Capone
    9 months ago

    They can’t collect legal taxes from illegal money.

  • Drew Peacock
    9 months ago

    Jimmy Carr ….PMSL

  • Al Capone
    9 months ago

    The rich are different when it comes to paying taxes: They hide more of their income.

  • Dick Turpin
    9 months ago

    I wonder if my mask will help

  • glenn
    9 months ago

    i love the title UNLEASH , what is it a rottweiler ?
    more like a dog with no teeth , that sums up HMRC

  • Paul
    9 months ago

    I suspect that this program is mythical.

    HRMC already have all the tools they need to find evaders.

    Most evaders on eBay think that they can dodge HMRC by opening multiple eBay accounts believing that HMRC have to get the information from eBay itself. What evaders don’t know is that HMRC can simply request every UK High St bank to send them a list of people who receive payments from Paypal, and HMRC could simply run the information through a spreadsheet to determine who is receiving more than, say, £2000 a year, and less than £10,000. (Anyone under £2K is probably private, and anybody over £10K is probably already registered as a business).

    HMRC probably don’t disclose exactly HOW they can catch people, but prefer to frighten evaders with talk of a grandiose new computer program when the reality is actually much more mundane.

    • radroach
      8 months ago

      With a PayPal Mastercard you don’t have to transfer anything to a bank account to access the loot

    8 months ago

    it definitely exists believe me!

    • Steve
      8 months ago

      Can you explain please Maggie? What do you mean?

    • MAGGIE
      8 months ago

      sorry wont go into any details but definitely exists

    • David
      8 months ago

      Thought so 😀

  • Donald P
    8 months ago

    HMRC have got a lot of power – however they do have the power themselves to be able to tame it.

    After their last scaremongering tactic a few years back, I know a case where the guy was caught out for VAT evasion, but they did not use their claimed superpowers to catch the guy out but instead, they caught the guy when the bot from the VISA system alerted a few irregularities in the VAT returns in terms of how much revenue was declared and how much VAT was being zeroed on their marketplace fees….

  • Karl
    8 months ago

    Hmrc are just trying to scare everyone to pay what HMRC say they owe. they will see you on ebay, amazon etc then check what you are paying and if your not they will send you a ridiculous bill for you to contest and they hope you will pay something better than nothing. Not sure what planet they are on. What are they going to do, send us all to prison where we get everything FREE and will cost them 500 per day to keep each one of us there.

Recent Comments

2 hours ago
ian: what a fabtastic message sums up how i feel 100% (on a smaller scale) but im...
11 hours ago
Nasir Kothia: A fantastic event !! Proud to be a sponsor and look forward to exhibiting again next...
15 hours ago
Northumbrian: Get real folks Suck it up or work round it EBay's been doing this for decades Many have...
16 hours ago
Pawel: So basically there is no way we can make our listing looking better by having...