Chartered accountancy firm Monahans, which has an office in Swindon, is warning people to ensure their tax returns are accurate as HM Revenue and Customs (HMRC) investigations become increasingly sophisticated, including monitoring Facebook accounts,
HMRC’s Connect database collects and correlates information from a wide range of public and private sources, such as councils, banks and even individuals’ social media accounts. 
This means that anyone posting news of holidays, new homes, home extensions or the like could put themselves at risk.
Even if an investigation proves that financial records are accurate, the hassle and upheaval of an investigation can create major issues.
Monahans managing partner Mike Shawyer, pictured, said: “HMRC now claims it now holds more information than the British Library.
“The result is that they no longer target only those whose tax returns seem unrealistic or suspect, as they have in the past. Inspectors are now basing 80% of their investigations on the leads that Connect gives them, which means innocent people are unexpectedly finding themselves subject to a long, time-consuming and potentially very expensive investigation.
“When Connect identifies that you’ve put up photos on social media from an expensive holiday destination or have paid for your daughter’s wedding, and the source of funding isn’t immediately transparent, you’re likely to appear on a suspect list. If profits in your company have dipped, but you still managed to extend your house, a red flag will go up.
“The fact that you have a completely innocent explanation when challenged is irrelevant. Once an investigation is launched, every detail of your financial situation and lifestyle will be picked over – in a long process that could seem to take over your life.”
