HMRC is watching: make sure your clients’ social media is private

HMRC has been using AI alongside ‘Connect’ – a data analytics tool designed to tackle tax evasion – to flag potential enquiry triggers based on content that’s publicly available online – including social media posts.

They can only do this if the social media pages are public.

The tier system

In their Compliance Handbook, HMRC outlines their three-tier model for gathering online data on individuals under suspicion:

• Tier 1: overt internet research, including social media that doesn’t require login access
• Tier 2: overt research of social media that does require login (HMRC’s practices on are withheld under the Freedom of Information act).
• Tier 3: covert activity (i.e. intentionally concealed) used only in exceptional cases for deeper investigations.

HMRC: surveillance strategies

HMRC has also made it clear that they monitor and retain data that’s freely accessible online. For example:

• News articles
• Websites
• Companies House and Land Registry records
• Blogs and social media posts without privacy settings

What’s more, AI-powered tools scan social media platforms like Facebook for keywords and patterns before feeding that data into Connect. If the investigated party’s posts suggest a lifestyle that doesn’t match their declared income – for example, luxury holidays or high-end purchases – it could trigger an enquiry.

The key takeaway

If your clients have the option of making their social media accounts private, it’s something they wish to consider as it’s a simple step that can help to avoid unnecessary scrutiny.

For more information or further advice, please contact Peter Fry, Senior Tax Consultant at info@pfptaxservices.co.uk.