A pilot programme launched by HMRC, which used credit reference agencies to cross check peoples declared income against their spending patterns, is now to be introduced nationally.
The scheme aims to pinpoint people who are at “high” and “medium” risks of tax avoidance, either illegal or legal. People who are singled out this way will then be investigated more thoroughly.
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It is likely that the majority of those who are labeled at greater risk of tax avoidance will be those who are self employed and are under declaring their earnings. Others that may fall in to the category though are those that have not declared bonuses or inheritance or those with offshore accounts.
The scheme has been unveiled by Chancellor George Osborne as part of his long term strategy to clear the countries debts. Mr. Osborne has also indicated he is going to further cut welfare, increase taxes for the wealthy and is urging the public to blow the whistle on tax dodgers. The Chancellor said: “While most taxpayers are doing their bit to help us balance the books, it is unacceptable for a minority to avoid paying their fair share.”
