< Go Back HMRC's Hidden Economy Team Posted: May 8, 2019In 2003 , HMRC formed a Hidden Economy Unit which had teams of intelligence officers working to track down individuals and businesses who had not registered for tax & VAT . They were looking for "ghosts" which were businesses not known to HMRC and "moonlighters" who were known about but who had other undeclared sources of income , including second jobs . They operated by trawling through data which was available in the media , from banks and building society client lists , from Land Registry records and from Amazon , Airbnb and Ebay .
In 2010 , HMRC brought into commission a computerised data reconciliation programmr called Connect which expanded and accelerated the collection of intelligence and the identification of businesses not registered for tax and/or VAT .
In recent years , HMRC has increased its HET initiative due to Government pressure on the Department to reduce the tax gap created by tax evasion . In addition , HMRC is seeking to make the granting and renewal of licences for those businesses which neeed them conditional on the business proving that it has registered with HMRC . These will include taxis , stall holders , private security , scrap dealers and waste management .
If you are in business , and you have not yet registered with HMRC , you should think very carefully of doing so by making a voluntary declaration before HMRC catches up with you .
If you have already received a letter from HMRC , then you will need specialist advice and support . As an ex senior HMRC investigator with years of experience acting for accountants and clients without accountants , I will handle enquiries from the HET or any other HMRC Compliance Unit and ensure that you are treated fairly and sympathetically .
