Our software specialist, Jayne, went over to Uckfield FM to talk about HMRC Connect. Never heard of it? We recommend you have a listen for a few minutes to give you an idea how HMRC are using data in new ways to identify sectors and businesses to investigate.
Connect is a data warehousing and analysis project was conceived back in 2005. It’s evolved a great deal since then and the current Connect system brings together a vast amount of different data to aid HMRC with enforcing tax compliance. Connect allows the HMRC to have a single view of a taxpayer AND incorporate a wide range of data from other sources. This data is not just HMRC data, it is from a range of other sources so it’s becoming ever more important to have all your records up to date and filed correctly.
More than 80%of all investigations undertaken by the HMRC are following from leads from the system. It is claimed that the database holds more information than the British Library. While some targeted may well be guilty many won’t be. They will simply be individuals and small businesses finding themselves on the receiving end of a mass mail shot from HMRC asking them to review their taxes because they fit a certain profile. Even more unwelcome they may find themselves singled out for a full investigation based on the smallest piece of information for which there is probably a very simple explanation.
In recognition of this, there are sources of simple help with recording your transactions digitally whether you’re a sole trader who’s used to dealing with cash payments or a small business thinking about moving your accounting system to the cloud. That’s where we come in, we keep on top of the latest developments to advise and set up our clients to make things easy.
If you’re worried about keeping on top of tax compliance, keeping your records up to date and filing the right information to HMRC don’t panic!
Asking a bookkeeper for help can save a lot of worry as we can help you get your records in order. Feel free to give us a call for a bit of friendly advice.