HMRC has recently gained new powers allowing it to find out the number and value of transaction undertaken by a specific trader by accessing information from the UK’s merchant acquirers, the companies which process card payment transactions.
This is the latest in a series of crackdowns on tax evasion and the data gathered is designed to ensure that traders have correctly accounted for all tax due.
The new powers effective 1 September 2013 will allow HMRC to access debit and credit card payment data for the last four years on card payments to all UK businesses and the first requests for data will be sent to merchant acquirers this week. This will be an annual request in the future.
The data will be analysed by HMRC using ‘sophisticated’ risk technology after having been handed nearly £1bn from the Government towards tackling fraud and evasion.
Curo Chartered Accountants