HMRC Tax Investigations
May 11, 2017
HMRC use computer system called “Connect” to help it effectively target its tax investigations. Connect interrogates information from multiple sources to detect links, and then identifies anomalies between the figures the taxpayer declared on his tax returns and the income or assets shown by other sources of information.
Last year HMRC used the Connect analysis and wrote to 10,000 individuals about interest which appeared to be missing from their tax returns for 2014/15. The Connect analysis may not always produce the correct answer, but if you receive a letter from HMRC querying your tax return, don’t ignore it. A simple letter can turn into a full-blown tax investigation if it is not handled with care.
Our Cambridge Tax Advisers can help you respond to any questions from HMRC, please contact us as soon as possible.