Income Tax: Tax Collection
The question
To ask the Chancellor of the Exchequer, if she will list each third party database that HMRC has access to for the purposes of income tax collection.
Answered by Dan Tomlinson
HMRC use third-party data to help simplify tax administration. Specifically in relation to calculating tax due, the key sources of third-party data are:
o Department for Work and Pensions – pension income and benefit information
o Bank and building societies– savings interest information
o Employers – payroll data about payments to employees
In addition, HMRC also make use of third-party data in our compliance activities to ensure customers pay the right amount of income tax. To protect the operational integrity of these activities we do not disclose all of our data sources, but at a high level they include card sales data and other data that provides evidence of undeclared taxable income.
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