Now the taxman is spying on your home using Google Earth: Satellite images give clues about wealth and lifestyle that may show you're not paying enough

Officials will feed data into a supercomputer to investigate taxpayers

They can also add in data from social networks like Facebook

Revenue inspectors are using Google maps to spy on homes and trap suspected tax dodgers.

Images from Google Earth, which allows users to zoom in on satellite views of properties, give the taxman clues about lifestyles and wealth, such as cars and home improvements.

Officials at HM Revenue & Customs will feed the data into a supercomputer to try to decide whether to investigate homeowners already believed to be paying too little tax.

Zooming in on tax evasion: Images from Google Earth, which allows users to zoom in on satellite views of properties, give the taxman clues about lifestyles and wealth, such as cars and home improvements

Google Earth is the latest weapon in HMRC’s battle to close a £35billion gap between what it believes individuals and companies owe and the tax that is actually collected.

It says tax evasion and the hidden economy – customers not paying VAT on home repairs, for example – cost the UK taxpayer £9billion a year. HMRC has spent nearly £1billion over the past three years trying to enforce the rules.

Over the past 18 months, it has set up dozens of taskforces to probe the tax receipts and business practices of industries as diverse as restaurants, private cab firms, hairdressers, outdoor markets, car dealerships and even Avon Ladies.

It has also spent £50million on the supercomputer, which is called Connect.

Created by defence giant BAE Systems three years ago, it now holds more than a billion pieces of information about any taxpayers it suspects of not declaring everything that they owe.

It includes tax payment records, interest on bank accounts, details of any properties owned, loans, job history and electoral records. Paul Aplin, tax partner at accountants AC Mole, said: ‘The Revenue can use Google Earth to look for clues. This could include for your lifestyle, such as cars outside your home, or to look at the state of renovations or repairs to check they’re as described on tax forms.

‘The sheer amount of digital information the taxman can now have on you is nothing short of phenomenal’ Paul Aplin, tax partner at accountants AC Mole

‘We’ve even seen cases where tax inspectors zoom in on aerial images of a caravan park belonging to a businessman – to check the number of properties against the amount of income being declared.

‘The sheer amount of digital information the taxman can now have on you is nothing short of phenomenal.’



Tax officials also add in extra details from searches on social media sites such as Facebook. Bragging about a brand new car or exotic holiday can flag up a warning – and trigger an inquiry.

As well as Google Earth, Revenue inspectors are using a kerbside view of homes and businesses known as Google Street View to track cheats.

Be careful what you share: Tax officials also add in extra details from searches on social media sites such as Facebook. Bragging about a brand new car or exotic holiday can flag up a warning ¿ and trigger an inquiry

Elaine Clark, of Cheapaccounting.co.uk, said: ‘In fragile economic times, closing in on those suspected of not paying what they owe is an efficient way of boosting tax revenues.

‘But some may worry it is overly intrusive, and it only works as long as they don’t wrongly pick on those self-employed who are innocent.’

An HMRC spokesman said: ‘The vast majority of people and businesses play by the rules and on their behalf we are coming down hard on cheats.’