Does HMRC check expenses?

[inector]

In US, when you submit tax filings to IRS, they don't care what you wrote there, as long as you pay some tax.

Is UK the same? Do they check every transaction?

 

[Sols]

What you're talking about are called audits. Most tax authorities don't question most tax returns‌ and just accept them.

Both the IRS and HMRC conduct audits if something about a‍ tax return triggers an alert.

IIRC, the IRS performs more audits but the HMRC perform⁠ more audits as a percentage of tax returns filed.

 

[JackAlabama]

would assume they doing some rudimentary automated checks⁠ for reasonable expenses like where your address is etc.
If you earn 10k a year⁤ but have an address in mayfair. it might trigger something.

 

[khinkali]

The Inflation Reduction Act (IRA) of 2022 gives the IRS $80 billion over ten years‌ to hire up to 87,000 new IRS employees, largely to increase the number of tax‍ audits. Individuals making under $400k per year are not supposed to get extra scrutiny; emphasis⁠ will be on high earners, large corporations, and partnerships.

 

[Wellington]

They track your social medias etc and others so yeah - the watchful eye of‌ HMRC is always observing