Claiming dividends? ‘Big Brother’ tax computer is watching you

HMRC’s Connect system allows it to match different bits of information about people’s affairs
HMRC’s Connect system allows it to match different bits of information about people’s affairs
ALAMY

The taxman is cracking down on self-assessment taxpayers who claim dividends on shares or income from rental properties.

HM Revenue & Customs is using data from its Connect super-computer programme, which allows it to match different bits of information about people’s affairs.

Saffery Champness, one of Britain’s biggest chartered accountancy firms, reports that more of its clients are receiving warning letters from HMRC after filling in their tax returns last year.

The letters often question whether information people have put down is correct, asking them to double check.

The accountant says clients have been accused of claiming entrepreneurs’ relief when not entitled to it; receiving dividends from shares or foreign income that has not been declared for capital gains tax purposes; failing to declare full