💣 HMRC has started hunting for your personal expenses – are you ready for a new stage of checks?

In 2025, HMRC (the UK tax authority) is shifting its focus to how you spend money, not just how much you earn. This means that tax inspectors will now compare your lifestyle with what you declare in your tax returns. If your spending doesn’t match your income, be ready to explain yourself.

🎯 What’s Changed?

Previously, HMRC focused on the income declared in tax returns. Now, the attention is shifting to “personal expenses“—from your trips, restaurants, and shopping to car maintenance and holidays.

💼 HMRC will be asking:

“If you declare an income of £15,000 per year, but you fly to Dubai and drive a Range Rover—where did the money come from?”

📌 What is HMRC Checking Now?

Here’s a list of what could come under scrutiny:

• 💳 Bank card spending
• 🧾 Purchases via Amazon, eBay, PayPal
• ✈️ Travel and holidays
• 🚗 Cars, subscriptions, fuel
• 🏠 Rent or mortgage payments
• 🍽 Frequent restaurant visits
• 📱 Subscriptions, phones, gadgets

And if all this doesn’t match the income you’ve declared as a self-employed person, landlord, or company director, you can expect a letter from HMRC.

⚠️ Who is Affected First?

• 👷 Self-employed individuals (builders, tradespeople, drivers, hairdressers)
• 🏠 Landlords who rent out property
• 👨‍👩‍👦‍👦 Small business owners
• 📉 Those who regularly show low income
• 💼 Those who receive cash or work without bank accounts
• Those who pay Income Tax (taxpayers only).

😳 What is HMRC Doing?

• Sends requests for a Personal Expenditure Review
• Asks for a detailed report of your spending
• Compares your expenses with your income level
• In the case of suspicion, launches an official investigation

💡 What Can You Do to Avoid Problems?

1. Don’t understate incomes—especially if you clearly don’t have a “poor” lifestyle.
2. Keep proof of where your money came from (e.g., gifts from relatives or savings).
3. Be ready to explain any large expenses.
4. Consult a professional if you have any doubts.

🛡 Can You Protect Yourself?

Yes. If you:

• Honestly declared your income
• Can explain the difference between your spending and income
• Kept a record (even a simple one) of your expenses

— then there’s nothing to worry about. But if you’ve been “playing” with the numbers, HMRC is now catching it faster than ever before.

📣 We Can Help:

• Review whether your expenses could raise suspicion
• Prepare you for an HMRC audit
• Draft an explanation and defense in case of an inquiry

📬 Consultation is free and without obligation.

🕵️‍♂️ HMRC is watching your lifestyle—be on alert!

The world of taxes has become digital, and now HMRC sees more than you think. The comparison of “how you live” and “what you declare” is the new reality of 2025.

💥 Don’t get caught. Check your finances now.

Capital Empire – the official ACSP in the UK. What does this mean for you?

Soon, only officially registered providers—ACSPs (Authorised Corporate Service Providers)—will be able to file documents with Companies House.

This is part of the reform under the Economic Crime and Corporate Transparency Act, aimed at combating fraud and increasing business transparency in the UK.

Who can be an ACSP?

Only organizations that have:

• Undergone registration and control according to AML (anti-money laundering) rules.
• Been verified and approved by Companies House.
• An authenticated digital signature (an agent assurance code and an authorisation key).

What this means for company owners:

🔐 Mandatory Identification All directors, beneficiaries, and Persons with Significant Control (PSC) of a company will have to undergo an identity check. But if you work with us, you don’t have to do it yourself. As an ACSP, we can perform the identity verification for you.

📑 Document Filing – Only through Authorised Providers Very soon, it will be impossible to register a new LTD company, file a Confirmation Statement, or change a director through a “regular accountant.” Such actions will be performed only by ACSPs. Capital Empire has already received this status and is listed in the register of authorised providers.

⚖️ Compliance with New Companies House Requirements We are officially accredited, have passed AML controls, and are authorised to act on behalf of clients. Your business with us operates legally, safely, and without the risk of documents being rejected.

Why this is important:

Now, a business in the UK needs more than just an accountant. It needs an official representative that the state trusts. 📉 Without an ACSP, filing documents on behalf of a client will become impossible. ⚠️ Handling checks yourself can lead to errors, delays, and unnecessary bureaucracy. ✅ With us, you maintain peace of mind and confidence that everything is done correctly.

📲 Contact us to:

• register an LTD
• transfer your company to our service
• get identified quickly and stress-free

We handle all communication with Companies House and HMRC—you just focus on your business.