HMRC is keen to close the “tax gap”, and one of their “tactics” is direct letters to individuals they suspect of having received income from certain sources.
The latest is to those suspected of generating income from selling or breeding of animals – particularly dogs and cats – where this has not been disclosed to HMRC. They will have information they have collected – this might be from local adverts, social media, a disgruntled customer tipping off HMRC, or something highlighted through their Connect network of data.
The letter encourages people to make a voluntary disclosure and register for self-assessment as necessary.
Anyone receiving such a letter should not just ignore it and it is recommended they seek professional advice.
Other recent “targets” have been to persons with significant control in a company, where tax returns may not have been submitted and there are dividends paid out shown in the company accounts, and those using electronic till systems where the software “hides” or suppresses business income. Those investing in crypto assets such as Bitcoin are also under scrutiny.