Does HMRC Investigate all tip-offs

HMRC does not shy away from carrying out investigations covertly to highlight tax fraud. HMRC off Members of their Enforcement and Compliance Taskforce have broad powers to expose tax evasion, including entering business premises disguised or simply posing as customers.

Connect

In addition, HMRC operates a new computer system, known as ‘Connect’. The system evaluates data to detect occasions where individuals’ lifestyles appear to exceed their means. Connect is responsible for many HMRC undercover operations.

It is important to understand HMRC TAX investigations and what to expect.