HMRC's super computer is watching you

Taxman’s supercomputer nudges taxpayers Connect, the computer system which gathers data for the taxman, has helped HMRC collect an extra £3bn in tax since it was first used in 2010, with experts saying that an increase in the volume of information it can process quickly has seen an increase in the number of “nudge” letters sent out to encourage individuals to disclose sources of income. HMRC says the computer system can help staff find anomalies between such things as bank interest, property income and other and tax liabilities, creating a profile of people and firms who may not be paying the right amount of tax. The Telegraph looks at examples where the data has prompted an inquiry despite assets being legitimate and complying with tax rules.