hazellend
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Post by hazellend on Aug 5, 2016 19:13:40 GMT
Do the P2P websites report all their customers income invidually to HMRC? How do HMRC know if the figures you give them are correct or not if not.
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Liz
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Post by Liz on Aug 5, 2016 19:36:14 GMT
Do the P2P websites report all their customers income invidually to HMRC? How do HMRC know if the figures you give them are correct or not if not. Yes each site will report your income to HMRC. You should also get a tax statement from each site at the end of the tax year. If you supply a different figure to HMRC than the platform, then you may need to explain the discrepancy.
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Post by mrclondon on Aug 5, 2016 19:38:20 GMT
Do the P2P websites report all their customers income invidually to HMRC? Yes, id against name and address How do HMRC know if the figures you give them are correct or not if not. For all the press reports citing HMRC IT incompetence, their data mining capability is pretty awesome ... their data processing capability has been described as on a par with the Met office. At a simplistic level their computers aggregate everything that has been reported to them by financial institutions and compare it to what you declare on your self assement (or manually to the tax office for inclusion on your tax code). They are not looking for an absolute match but close enough to assume your figure may well be right. At the more complex level they look at the fact you have registered a new supercar worth £250k and start trying to work out whether it is plausible that you can afford such a car based on your income declared for tax purposes.
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hazellend
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Post by hazellend on Aug 5, 2016 19:42:48 GMT
Thanks. Good to know. What about the sites that don't give you a tax statement?
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Liz
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Post by Liz on Aug 5, 2016 19:50:37 GMT
Thanks. Good to know. What about the sites that don't give you a tax statement? Steer clear.
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locutus
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Post by locutus on Aug 5, 2016 20:02:19 GMT
For all the press reports citing HMRC IT incompetence, their data mining capability is pretty awesome ... their data processing capability has been described as on a par with the Met office. At a simplistic level their computers aggregate everything that has been reported to them by financial institutions and compare it to what you declare on your self assement (or manually to the tax office for inclusion on your tax code). They are not looking for an absolute match but close enough to assume your figure may well be right. At the more complex level they look at the fact you have registered a new supercar worth £250k and start trying to work out whether it is plausible that you can afford such a car based on your income declared for tax purposes. Another fascinating technique used to detect fraud is Benford's Law .
en.wikipedia.org/wiki/Benford%27s_law
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Post by parag on Aug 5, 2016 20:04:20 GMT
HMRC request annual data from us, which we provide. It must be in a certain format using an Excel template provided by them. The file gets automatically processed by them and I guess the data is sent off to various parts of their system to enable them to verify if what you have declared on your SA return is correct. They are not expecting it to match exactly but it needs to be pretty close.
It's called an 'OI (other interest)' return. It includes lender name, address, country code and gross interest earned amongst many other fields.
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registerme
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Post by registerme on Aug 5, 2016 20:27:44 GMT
That one has always amused me. The myriad <insert trade / business> falsifying VAT returns going "who, me, guv <innocent eyes>" must have been highly amusing at the time. There will be other approaches as well....
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Post by snappyfish on Aug 5, 2016 21:51:08 GMT
How do HMRC know if the figures you give them are correct or not if not. For all the press reports citing HMRC IT incompetence, their data mining capability is pretty awesome ... their data processing capability has been described as on a par with the Met office. At a simplistic level their computers aggregate everything that has been reported to them by financial institutions and compare it to what you declare on your self assement (or manually to the tax office for inclusion on your tax code). They are not looking for an absolute match but close enough to assume your figure may well be right. At the more complex level they look at the fact you have registered a new supercar worth £250k and start trying to work out whether it is plausible that you can afford such a car based on your income declared for tax purposes. HMRC Check what cars people drive???
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Post by mrclondon on Aug 5, 2016 22:07:07 GMT
For all the press reports citing HMRC IT incompetence, their data mining capability is pretty awesome ... their data processing capability has been described as on a par with the Met office. At a simplistic level their computers aggregate everything that has been reported to them by financial institutions and compare it to what you declare on your self assement (or manually to the tax office for inclusion on your tax code). They are not looking for an absolute match but close enough to assume your figure may well be right. At the more complex level they look at the fact you have registered a new supercar worth £250k and start trying to work out whether it is plausible that you can afford such a car based on your income declared for tax purposes. HMRC Check what cars people drive??? Yes, HMRC computers mine info from the DVLA and Land Registry databases, ebay , paypal and hundreds of other sources: www.telegraph.co.uk/finance/personalfinance/tax/11697816/What-does-the-taxman-know-about-you-your-finances-and-your-lifestyle.html
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registerme
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Post by registerme on Aug 5, 2016 22:17:41 GMT
For all I support what they do, I do wish they'd show similar vigour when it comes to Google / Amazon / Starbucks / Goldman Sachs et al.
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Post by dualinvestor on Aug 6, 2016 6:15:36 GMT
For all the press reports citing HMRC IT incompetence, their data mining capability is pretty awesome ... their data processing capability has been described as on a par with the Met office. At a simplistic level their computers aggregate everything that has been reported to them by financial institutions and compare it to what you declare on your self assement (or manually to the tax office for inclusion on your tax code). They are not looking for an absolute match but close enough to assume your figure may well be right. At the more complex level they look at the fact you have registered a new supercar worth £250k and start trying to work out whether it is plausible that you can afford such a car based on your income declared for tax purposes. HMRC Check what cars people drive??? I have nothing to worry about with my Reliant Robin then
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adrianc
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Post by adrianc on Aug 6, 2016 7:12:48 GMT
For all I support what they do, I do wish they'd show similar vigour when it comes to Google / Amazon / Starbucks / Goldman Sachs et al. It's a very different kettle of fish - they aren't lying about their UK revenue and UK tax liability. They're just being a bit creative when it comes to moving income between countries, booking transactions between different corporate entities to move the money. They DO declare the income - just in a different, lower-tax, jurisdiction. When it comes to the UK taxman's receipts from it, it doesn't matter how they do it, really, or how much they pay elsewhere - they aren't booking the income HERE, so there's no tax liability here. Some of them may well have done naughty deals with the tax authorities in some of those countries, but that's as much illegality on the part of that government as it is on the part of the company.
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Post by snappyfish on Aug 7, 2016 12:17:14 GMT
HMRC Check what cars people drive??? I have nothing to worry about with my Reliant Robin then I don't either with my 2003 Mondeo worth £700 at best. But they can simply say " Mr Jones Johnson has just purchased a Harley sportster for £8k" Now how do they value this against registration as you can have a rare bike but it might be 15 years old?
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