Suspected instances of HMRC Connect at work

Suspected instances of HMRC Connect at work

Didn't find your answer?

I guess everyone has heard of HMRC Connect by now.  

http://www.taxation.co.uk/taxation/Articles/2014/09/02/330221/well-connected

To my mind anything that leads to enquiries being better focused and targeted is good news for those who are doing their best to follow the rules, and most people I've talked to seem to agree, broadly anyway!

I'm just interested in circumstances where it looks as though Connect has been active. A fairly trivial example....

A friend in practice (yes truly, not me) had a PAYE visit to a ltd co client recently.  The company had cars on the balance sheet which the client insisted on treating as pool cars.  They did seem to qualify, although my friend advised firmly on the risks.

In preparing for the PAYE visit, "it was discovered" that the cars were not registered in the company name.

The HMRC officer was helpful and straightforward and the matter is being sorted out with no great grief.

So...

- Motor vehicles on the balance sheet - ixbrl - HMRC

- No P11d car benefits - HMRC.

- No vehicles registered in the company name - DVLA

Not too hard to imagine Connect at work, (arguably DVLA info wouldn't be crucial anyway, but in some cases it would confirm that vehicles are vans, and address the P11d issue.)

You may feel "probably not" in this case, but anyone wondering if they've seen evidence of the system doing its stuff?

Corinius.

Replies (9)

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By Roland195
24th Jun 2015 14:20

Believe it when I see it

I currently have the case of a client who was self employed prior to joining the army. HMRC have sent tax returns, penalties and other correspondence to his old flat since 2006 (The penalty position came as something of a shock to him when the 64/8 was processed).

Likewise, a client had moved premises and neglected to update their VAT registration details. After falling behind a bit with their returns and attempting to bring themselves up to date, the found no outstanding returns to submit as HMRC had decided they were "missing traders" even though the PAYE & Corporation tax had the correct details.

Given the continuing inability for HMRC systems & departments to cooperate with each other, I am not overly concerned about their ability to gather information from elsewhere.

 

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By Corinius
24th Jun 2015 14:35

GIGO

 

"Garbage in, garbage out," of course, but I wouldn't take individual departmental failures to mean the system doesn't work.

 

"Given the continuing inability for HMRC systems & departments to cooperate with each other, I am not overly concerned about their ability to gather information from elsewhere." Why should anyone be concerned? ;-)

 

From Taxation (link above)

"Even though HMRC have spent £80m on this system the proof is in the pudding, as the expression goes, and it does seem that Connect has been a shrewd investment. Since its inception, it has helped to secure an additional £3bn of tax revenues. A return of 37.5 to 1 is good by any standards.

The importance of Connect in HMRC’s compliance programme is reflected by the fact that, in 2011/12, 62% of enquiry case selections were generated by Connect. This rose to 77% in 2012/13 and the target for 2013/14 was 83%."

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Replying to Tax Dragon:
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By neileg
24th Jun 2015 15:55

Hate it!

Corinius wrote:

the proof is in the pudding, as the expression goes,

My pet hate, grrrr! The expression actually goes " The proof of the pudding is in the eating"

Rant over

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Replying to Tax Dragon:
paddle steamer
By DJKL
24th Jun 2015 16:57

Not if you consider ours at Christmas

neileg wrote:

Corinius wrote:

the proof is in the pudding, as the expression goes,

My pet hate, grrrr! The expression actually goes " The proof of the pudding is in the eating"

Rant over

Not if you consider ours at Christmas, the "proof" is very much " in "the pudding, even without hot brandy poured over it could possibly ignite; spontaneous combustion as described in Bleak House.

Having said that the same could be said of the Christmas cake and the trifle, we also tend to have a fair bit of proof in both of these.

 

 

 

Edited to remove incorrect apostrophe.

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By Mr_awol
24th Jun 2015 16:07

Pudding Proof

You may hate it, but 'proof is in the pudding' is valid and acceptable in its own right as a shorthand version of the olden phrase "the proof of the pudding is in the eating"

In the 600 years during which the phrase has bee in use, puddings have changed just as much as the phrases involving them...........

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By sally1964
24th Jun 2015 16:16

Rental

I have seen HMRC armed with details of council tax payers and land registry and housing benefit details to assess someone for not declaring rental - as Land registry forms now have NI number on them easy to cross reference

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By neileg
24th Jun 2015 16:18

Thanks Mr_awol

Yes it has become acceptable by usage but it doesn't stop me hating it!

Don't get me started or I'll have a rant over the use of homage in its French pronunciation instead of English.

Or the Americans having 'erbs instead of herbs.

I'm very nearly old enough to be an old git, just getting my training in early.

 

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By Steve Kesby
24th Jun 2015 16:47

@ Neil

Talking of Americans and 'erbs: basil and oregano, or should I say bayzil and oreggorno.

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By Corinius
25th Jun 2015 11:01

 

 

How about taking pudding discussions to another forum?

 

By coincidence there's an article on Connect in today's Daily Telegraph

http://www.telegraph.co.uk/finance/personalfinance/tax/11697816/What-does-the-taxman-know-about-you-your-finances-and-your-lifestyle.html

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