Posting pictures of extravagant wealth on social media could land you in trouble with HM Revenue and Customs (HMRC), a barrister has warned. Tax investigators are increasingly using technology to review public posts, looking for lifestyles that do not match reported income.
Tax barrister Andy Wood said HMRC has 'ramped up' its use of data analytics to ensure people pay the correct amount of tax. Public social media posts are now scrutinised as they can provide evidence of financial discrepancies.
Wood explained that HMRC is legally entitled to view any publicly available information on social media, including posts, photos, and videos. Frequent posts about luxury holidays and expensive purchases by someone reporting minimal income can raise red flags and trigger investigations.
While social media activity alone may not prompt an investigation, it plays a key role in corroborating other evidence. If suspicious activity is found, it can lead to audits, requests for additional documentation, and interviews to verify income and assets.
This crackdown is part of a wider effort by HMRC to tackle tax dodging, including greater focus on the side-hustle economy. Households are urged to be mindful of what they share publicly, ensuring their social media aligns with their financial declarations to avoid unwanted attention.
