Ahead of the January 31 deadline for 2015/16 tax returns, HM Revenue and Customs has released some details about its £100m ‘snooper computer’ that can tell if you aren’t paying enough tax.
The powerful super-computer known as ‘Connect’ draws information from lots of different sources, including some places you might not have thought about.
If the computer thinks that you have underpaid on your return then it will flag your account and prompt further investigation.
All this means that HMRC no longer needs to rely solely on information supplied by individual taxpayers. If you, accidently or otherwise, misreport your income then it could only be a matter of time before you get caught in the taxman’s web.
HMRC is already using the system to warn users that that they may have underpaid on previous tax returns.