Credit Reference Agencies Helping HMRC…
HMRC has recently completed a pilot scheme where credit reference agencies have helped identify people who are potentially not paying enough tax. The pilot involved in the region of 20,000 people and because of its success is now being taken nationwide. Roughly two million people could be investigated by the scheme.
The credit reference agencies perform an examination of the figures stated on a person’s self assessment tax return and their spending habits. It can highlight self employed people who have not declared all of their income and even help identify people who have received money through an inheritance or bonus sum. The tax payers who are classed as medium or high risk due to the examination, will have their personal details given to HMRC for further investigation.
The credit-reference scheme is part of a number of initiatives to target people and companies who are evading tax in the UK. The Treasury department is committing an extra £77 million a year to help HMRC over the next two years, in their investigations to claim back unpaid tax. It is reported that the target is to raise an extra £10 billion in tax revenue.
