Latest news with #HMRC
Scottish Sun
22 minutes ago
- Business
- Scottish Sun
HMRC spying on workers' social media posts in tax crackdown
Find out whether the move could affect you TAX IT HMRC spying on workers' social media posts in tax crackdown Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) HMRC has admitted to using AI to spy on workers' social media posts as part of a tax crackdown. The tax authority has been using the technology to look at internet posts that might provide evidence of cheating tax bills, according to a report in The Telegraph. Sign up for Scottish Sun newsletter Sign up 1 HMRC has said it looks at social media posts for evidence of tax evasion in criminal investigations Credit: Getty In particular it's looking for posts about large purchases or expensive holidays that could trigger a red flag if it looks like someone is spending beyond their means. An HMRC spokesperson has insisted the tools are only being used for social media monitoring in criminal investigations and it won't affect the average taxpayer. They said there are "robust safeguards in place" and it's believed that social media monitoring has been used for a number of years. But concerns have been raised about whether the technology could be used more widely in future. HMRC also looks at workers's financial records, spending habits and tax returns to look for evidence of cheating. It uses an IT system called Connect to look at financial data for routine tax investigation. It's believed HMRC is increasingly relying more on online systems rather than humans to carry out its investigations in a bid to save money. The taxman has also said its staff will use AI to identify suspected tax evaders and send out "automated nudges" asking them to pay what they owe. It comes as Chancellor Rachel Reeves is trying to boost public finances to fill a £51billion black hole in the economy. The Government is trying to avoid raising taxes for working people - but it therefore needs to find new ways to boost the public purse. Raising taxes will kill off growth, Reeves warned as she pledges to rip up business red tape Earlier this year, Reeves announced a fresh £1billion clampdown on tax dodgers that would see HMRC given fresh powers to claw back lost money. Almost £5.5billion was lost to tax evasion in 2022-23, 81% of which was from small businesses. Then there's also taxes that remain uncollected due to HMRC being unable to locate the correct data. The chancellor just days ago approved new rules meaning banks could be forced to share more of their customers' financial details. Under the plans, banks will need to ask new and existing customers with savings accounts for their National Insurance numbers from April 2027. This will make it easier for HMRC to bill savers who have breached their personal savings allowance. HMRC has said it's unable to get hold of taxpayer data properly in about a fifth of cases - meaning there could be millions of pounds worth of tax that doesn't get collected. Warning over AI use Some MPs have raised concerns that using AI to gather evidence of potential tax evasion could lead to errors. They also fear the technology could start to be rolled out more widely by HMRC. Senior Conservative MP Bob Blackman told The Telegraph: "If they suddenly start taking legal action against individuals based on that, it seems draconian and very challenging – to put it mildly. "You've got to have a check and balance. The risk is that AI gets it wrong and someone is pilloried – it seems a bit strange if they start doing that with AI. Without a human check, you can see there's going to be a problem." Sir John Hayes, a former security minister and chairman of the Common Sense Group of Tory MPs, warned it could lead to another Post Office-type scandal. "Where confidential or sensitive material is concerned, people need to be assured that human beings with experience, common sense and judgement are making decisions," he said. "Automated processes remove human interactions. I would be very concerned that we will end up with a Horizon Post Office-type scandal."
The Sun
23 minutes ago
- Business
- The Sun
HMRC spying on workers' social media posts in tax crackdown
HMRC has admitted to using AI to spy on workers' social media posts as part of a tax crackdown. The tax authority has been using the technology to look at internet posts that might provide evidence of cheating tax bills, according to a report in The Telegraph. In particular it's looking for posts about large purchases or expensive holidays that could trigger a red flag if it looks like someone is spending beyond their means. An HMRC spokesperson has insisted the tools are only being used for social media monitoring in criminal investigations and it won't affect the average taxpayer. They said there are "robust safeguards in place" and it's believed that social media monitoring has been used for a number of years. But concerns have been raised about whether the technology could be used more widely in future. HMRC also looks at workers's financial records, spending habits and tax returns to look for evidence of cheating. It uses an IT system called Connect to look at financial data for routine tax investigation. It's believed HMRC is increasingly relying more on online systems rather than humans to carry out its investigations in a bid to save money. The taxman has also said its staff will use AI to identify suspected tax evaders and send out "automated nudges" asking them to pay what they owe. It comes as Chancellor Rachel Reeves is trying to boost public finances to fill a £51billion black hole in the economy. The Government is trying to avoid raising taxes for working people - but it therefore needs to find new ways to boost the public purse. Raising taxes will kill off growth, Reeves warned as she pledges to rip up business red tape Earlier this year, Reeves announced a fresh £1billion clampdown on tax dodgers that would see HMRC given fresh powers to claw back lost money. Almost £5.5billion was lost to tax evasion in 2022-23, 81% of which was from small businesses. Then there's also taxes that remain uncollected due to HMRC being unable to locate the correct data. The chancellor just days ago approved new rules meaning banks could be forced to share more of their customers' financial details. Under the plans, banks will need to ask new and existing customers with savings accounts for their National Insurance numbers from April 2027. This will make it easier for HMRC to bill savers who have breached their personal savings allowance. HMRC has said it's unable to get hold of taxpayer data properly in about a fifth of cases - meaning there could be millions of pounds worth of tax that doesn't get collected. Warning over AI use Some MPs have raised concerns that using AI to gather evidence of potential tax evasion could lead to errors. They also fear the technology could start to be rolled out more widely by HMRC. Senior Conservative MP Bob Blackman told The Telegraph: "If they suddenly start taking legal action against individuals based on that, it seems draconian and very challenging – to put it mildly. "You've got to have a check and balance. The risk is that AI gets it wrong and someone is pilloried – it seems a bit strange if they start doing that with AI. Without a human check, you can see there's going to be a problem." Sir John Hayes, a former security minister and chairman of the Common Sense Group of Tory MPs, warned it could lead to another Post Office-type scandal. "Where confidential or sensitive material is concerned, people need to be assured that human beings with experience, common sense and judgement are making decisions," he said. "Automated processes remove human interactions. I would be very concerned that we will end up with a Horizon Post Office-type scandal." How do I file a tax return? TO file a self assessment tax retun, you'll need to register with HMRC first, which will then issue you with a Unique Taxpayer Reference (UTR). You must register for self assessment by October 5 if you have to file a tax return and you have not sent one before. You can do so by visiting If you've previously registered and already have a UTR, you don't need to go through this step again. Once you've got your UTR, you can sign in via the "Self Assessment tax return" section of HMRC's website by visiting You can then file your self assessment tax return online. The deadline for sending a return online is January 31 every year. If you need a paper copy of the main Self Assessment tax return, call HMRC on 03000 200 3610 and request an SA100 form. The deadline for sending a return using a paper form is October 31 every year. You need to pay the tax you owe by midnight on January 31 each year. HMRC accepts your payment on the date you make it, not the date it reaches its account. File late and HMRC will issue you with a fine.
The National
an hour ago
- Business
- The National
Kate Forbes blasts National Insurance hike amid payrolled staff slump
HMRC early estimates show for July 2025 show there were 2.45 million payrolled employees in Scotland. While this is 2000 more than the number of payrolled employees in the previous month, it is down 13,000 compared to July 2024. In April to June 2025, Scotland's employment rate estimate was 75.1%. The unemployment rate estimate was 3.8% and the economic inactivity rate estimate was 21.9% in the same period. READ MORE: John Swinney interview: The FM on indyref2, Israel, energy and more The unemployment rate was still almost half of what it was in London for the period (6%), according to the Office for National Statistics, and lower than the UK's rate as a whole (4.7%). The only area of the UK with lower unemployment than Scotland in the period was Northern Ireland. Deputy First Minister Forbes has said while figures show Scotland's labour market to be "resilient", there must be a reversal in the hike to employers' NICs. She said: "These figures show that Scotland's labour market remains resilient with the number of payrolled employees in Scotland and their median monthly pay remaining high. 'The Scottish Government is focussed on driving the economic growth, conditions and investment that's crucial to supporting jobs and prosperity. 'We are taking real action to deliver, investing up to £500 million over five years in the infrastructure and manufacturing facilities critical to growth in the offshore wind sector. We are also investing £90 million in our employability services in 2025-26 to support people towards and into employment. 'However, we need decisive action from the UK Government to boost growth and a reversal of the decision to raise employers' National Insurance contributions.' READ MORE: Labour eye 'utterly reckless' bonfire of nuclear energy regulations In June. the SNP said the hike was "destroying jobs, squeezing wages and choking off economic growth". Rachel Reeves announced in her UK Budget last October that employers' NICs would rise from 13.8% to 15% on salaries above £5000. The Government said the changes would eventually raise £25 billion a year. The number of payrolled employees has decreased for all regions and countries of the UK, except for Northern Ireland where it has increased by 0.7%, when comparing July 2025 with the same period the previous year. The figures are likely to be revised when more data is received next month, ONS said.
Daily Record
an hour ago
- General
- Daily Record
Parents urged to apply for £319 one-off payment to help cover costs of new school year
Applications for the School Age Payment are open until February 28, 2026. Social Security Scotland is urging parents, carers and guardians on certain benefits with a child born between March 1, 2020, and February 28, 2021, to check whether they are eligible for a one-off payment worth £319.80. The Best Start Grant School Age Payment is made per eligible child in Scotland-only and aims to help with the costs of preparing them for school. Applications for School Age Payment are open until February 28, 2026. School Age Payment is issued automatically to people who get Scottish Child Payment. However, people who do not receive the devolved benefit, or have opted out of automatic payments, should consider making an application before the new school year starts - full details can be found on The money aims to help parents or carers with the costs of their child starting school and is available for all eligible children from the same household. The School Age Payment has not replaced the School Clothing Grant and does not affect payments of the School Clothing Grant in any way. If you want to apply for both, you can - full details here. A person may be able to get Best Start Grant and Best Start Foods if they or their partner meet these conditions: live in Scotland are pregnant or have a child who's the right age for a payment are the main person looking after the child get certain benefits Benefits or payments you need to get To get Best Start Grant and Foods, normally you or your partner need to get one of these: Universal Credit Housing Benefit Income Support Pension Credit income-based Jobseekers Allowance (JSA) If you're under 20-years-old and do not get one of the payments listed above, you may still be able to get Best Start Grant and Best Start Foods. If you're not getting any of these benefits or payments, but have applied for one, you can still apply for Best Start Grant and Best Start Foods. Guidance on also explains that 'Child Benefit on its own is not an accepted benefit for Best Start Grant or Best Start Foods. You must get one of the benefits from this list.' People can apply online, by phone or by post. More information can be found on the dedicated Best Start Grant and Best Start Foods pages on here or by calling Social Security Scotland for free on 0800 182 2222. Scottish Child Payment Scottish Child Payment is unique to Scotland and provides financial support for families, helping with the costs of caring for a child. It is a weekly payment, currently worth £27.15 (£108.60 every four-week pay period), for every eligible child that a parent or carer looks after who's under 16 years of age. Social Security Scotland recently revealed that there are around one in 10 families who might be eligible for the payment but not claiming it. Combined with Child Benefit payments from HM Revenue and Customs (HMRC), parents could be due up to £212.80 every month in additional support. Child Benefit is a separate UK-wide payment worth £26.05 for the eldest or only child. The payment is also issued every four weeks which amounts to £104.20 every payment period. Parents with additional children receive £17.25 each week, some £69.00 every four week pay period. Scottish Child Payment is also one of the five family payments parents and carers may be eligible for along with Best Start Grant and Best Start Foods. To qualify for Scottish Child Payment, all of the following need to apply: the person lives in Scotland the person or their partner are getting certain benefits or payments the person or their partner are the main person looking after a child who's under 16 years old A full list of qualifying benefits can be found online here. Parents, carers and guardians can get more information about financial help on the dedicated Children and Family section on here or by calling Social Security Scotland free on 0800 182 2222.
Powys County Times
an hour ago
- Business
- Powys County Times
HMRC set to punish UK households who 'didn't realise'
A HMRC warning has been issued as thousands of UK households "may not realise" you have to pay a certain tax. The Labour Party government's tax arm says people need to plan several years to avoid paying a hefty tax bill. The standard Inheritance Tax rate is 40%. It's only charged on the part of your estate that's above the threshold. Here is an example: Your estate is worth £500,000 and your tax-free threshold is £325,000. The Inheritance Tax charged will be 40% of £175,000 (£500,000 minus £325,000). Teachers! Need some inspiration for your next lesson? 📢 Tax Facts is a free #TeacherResource to help pupils aged 8-17 understand the UK tax system. Visit the link below to download ready to use lesson plans, videos and activity sheets. ⬇️ — HM Revenue & Customs (@HMRCgovuk) August 9, 2025 Lorraine Wilson, principal associate in the private wealth team at national law firm Weightmans, warned that ever more people are being dragged into paying the tax "without realising it". Ms Wilson said: "Someone giving away assets late in life may not realise that gifts made within seven years of death can still be taxed." Ms Wilson said it is important to take "early action" to get your estate in order and think about your inheritance tax liability. "For those whose wealth is tied up in property or investments, there are structured options like trusts or family investment companies. "These can help you pass wealth down the generations while keeping some flexibility." Last year, HMRC collected a record £7.5 billion from IHT. That figure is expected to grow, especially as more people are pulled into the tax bracket simply because of rising property values.
