HMRC’s growing reliance on Connect database could mean an increasing number of innocent taxpayers face investigation.
Over 80% of all tax investigations undertaken by HMRC now follow potential leads generated by its £45 million database system, Connect, according to recent reports. The new reliance on automated systems to identify targets means that taxpayers could face an increased risk of investigation, simply for having their name thrown up by HMRC algorithms.
When acting for a potential buyer in respect of a property purchase, it is normal for a solicitor to engage with a third party to conduct searches. These will determine whether any restrictions apply over the property, and provide other relevant information of interest to the buyer.
Local councils are often instructed to carry out these searches, and in the past there has been no requirement for them to add VAT to their fees.
As we enter another new year, thoughts turn to what the future will hold. For HM Revenue & Customs (HMRC) the future is a digital revolution to fundamentally change the way that tax information is collected. These changes are being referred to ‘Making Tax Digital’ (MTD).
The requirements will start in April 2018 for some businesses, with the aim for the roll-out to be completed with a fully digital system by 2020.
The Autumn Statement was not the most exciting from a tax perspective, but it was interesting for a number of reasons.
The Chancellor finished his first statement with an unexpected announcement; since the days of Gordon Brown there have been two showpiece performances, the March Budget, concentrating on tax, and the Autumn Statement, concentrating on spending.