HMRC is targeting investment banks and fund managers, with investigations into high earners in these roles up by a quarter in the past year, according to analysis by insurers PFP
The insurer says the finance team in HMRC’s High Net Worth Unit (HNWI) has opened an average of five new investigations per month in the past year, up from four per month in the first six months after it started operations in September 2012. The total extra tax yield so far is £38.85m.
Kevin Igoe, managing director of PFP, said: ‘HMRC has already had a lot of success in targeting wealthy individuals through its High Net Worth Unit, and turning the spotlight on the financial services sector is already starting to pay off. This campaign will be seen by many as further evidence of HMRC’s increasing focus on professionals.’
Igoe highlighted HMRC’s ability to draw data from multiple public and private sources, including banks, local councils, the Driver & Vehicle Licensing Agency (DVLA), insurers, hospitals, online sales and purchases records, and even social media.
'For example, individuals’ social media profiles can now be used by HMRC to build up a more detailed picture of their lifestyle. Social media boasts about expensive cars or even holiday pictures could trigger an enquiry if they do not fit with the individual’s reported income,’ he warned.
