HMRC Connect raises £4.6bn in one year

HMRC’s powerful data-analysis system, Connect, has helped recover £4.6 billion in unpaid tax during the 2024-25 tax year — a 35% increase on the average of £3.4 billion in previous years (source: Pinsent Masons, via Freedom of Information request).

Launched in 2010, Connect is HMRC’s advanced big-data tool for identifying

HMRC are modernising their systems

potential tax non-compliance. It draws information from a vast range of data sources — including banks, employers, property records, and payment providers — to highlight patterns and discrepancies that might otherwise go unnoticed.

• Around 4,300 HMRC staff now use Connect to assist in investigations.

• Over 540,000 cases were identified in 2024-25 through Connect’s data matching.

• HMRC emphasises that Connect does not access emails, browser histories, or social-media accounts.

  
  

According to Ian Robotham of Pinsent Masons, “Taxpayers are now facing a level of oversight that would have been unthinkable just a few years ago. As Connect grows, we can expect far greater scrutiny of financial affairs.”

HMRC has also partnered with Palantir Technologies, a US analytics firm known for its work in security and intelligence. This partnership aims to make Connect’s data-analysis capabilities even more sophisticated and wide-reaching.

What This Means for Taxpayers

• HMRC is becoming increasingly effective at cross-checking income and lifestyle data.

• Undeclared income, unreported property lettings, or errors in returns are far more likely to be detected.

• Ensuring your records are accurate, consistent, and fully disclosed is more important than ever.

At Short & Sons Accountants, we help clients stay fully compliant with HMRC’s ever-evolving systems — whether you’re a landlord, sole trader, or small-business owner.

If you’re concerned about HMRC enquiries or past declarations, speak to our team in Staines-upon-Thames for confidential advice and tax-review support.