HMRC's Data Grab

 

HMRC is demanding more data from taxpayers in three key areas: working hours, shareholdings, and dividends. The new requirements, which will come into effect from 2025/26, are designed to help HMRC crack down on tax evasion and avoidance.

Working hours

HMRC is requiring employers to report the number of hours worked by each employee. This information will be used to verify that employees are paying the correct amount of tax.

Shareholdings

HMRC is requiring shareholders to report their shareholdings in all companies, including those that are not UK-registered. This information will be used to track dividends and ensure that they are taxed correctly.

Dividends

HMRC is requiring companies to report the amount of dividends paid to each shareholder. This information will be used to ensure that dividends are taxed correctly and that shareholders are not claiming tax relief that they are not entitled to.

The new data requirements have been met with mixed reactions. Some taxpayers have welcomed the move, arguing that it will help to ensure that everyone pays their fair share of tax. Others have expressed concerns about the privacy implications of the new requirements.

HMRC has said that the new data requirements will be used in a "fair and proportionate" way. The agency has also said that it will take steps to protect the privacy of taxpayers.

Only time will tell how the new data requirements will be implemented and what impact they will have on taxpayers.

What does this mean for you?

If you are a taxpayer, you will need to be aware of the new data requirements and how they will affect you. You may need to provide HMRC with additional information about your working hours, shareholdings, and dividends.

You should also be aware of your privacy rights. HMRC has said that it will take steps to protect the privacy of taxpayers, but you should still be vigilant about your personal information.

Tax does have to be taxing.

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