There have been a few threads about HMRC. What they know, how much time and resource they have to look and whether they can dig out the info on 'small fry'.
Well
here's a good write up about their 'connect' program. The sources they have access to makes interesting reading
"
Sources of data used by Connect
There are more than 30 different databases available in Connect for analysis although HMRC does not disclose all its sources of information.
The databases include the following.
- Tax returns (including VAT, PAYE, income tax and corporation tax returns).
- Bank accounts and pensions.
- Credit reference agencies.
- Credit and debit card accounts.
- Online payment providers such as PayPal.
- Foreign tax jurisdictions (including treaties and automatic exchange agreements) and the common reporting standard.
- Government agencies such as Companies House, the Land Registry and the Border Agency.
- Online social networking.
- Property websites such as Zoopla and Rightmove.
- Amazon, eBay, Gumtree and similar sales websites.
- Google Street View.
- Council tax records.
- DVLA records.
- DWP records.
- Electoral roll.
- Insurance companies.
- Charities Commission.
- Flight sales and passenger information.
What leads to an HMRC investigation?
In the past, HMRC enquiries were often triggered by a tip-off to the department by a disgruntled employee or by a former spouse or were random enquiries. Today, enquiries in the majority of cases (over 90%) are triggered by information and analysis generated by Connect.
"