To think this is fraud and do I say something or stay out of it?

You are jealous, nosy, and bitter. You are not this persons friend. I don't know how you can post this, don't you feel embarrased.
My suggestion is you reflect on yourself and think about why you are so concerned either this person's life.

why does it have to be a man? Could be her mother or sister?!

Apologies for multiple texting - this is my wifi which freezes in this particular building and then makes damn sure I ram home the message!!

As someone who has a business, Two scenarios here and I’m not sure which it is

scenario a - company a ( and the ‘friends’ relative - 100% uses his own salaried people and lets them do work , buy stuff and pays them and gets an equivalent reduction against corporation tax - only really works if it’s a company that are profitable and paying corp tax and often VAT - whereby there will be VAT ‘out’ but no VAT ‘in’ - hence a rebate or an offset if VAT due in general

scenario B - company A uses contractors for jobs from company B ( who said relative works for) and company B are sending in inflated invoices to company A to cover off work at Ops ‘friends’ house -

company A if in profit may not actually care , if they could do with a deduction against corporation tax- however almost certainly wouldn’t approve if they knew it was going on - but if they were on a fixed price job presumably company A were ok with the quote . If it’s inflated they could always have gone elsewhere where they aren’t fudging invoices to fix relatives places.

either way OP, it’s annoying but yes it does happen.

it’s only really fraud if all within company a if it’s ’kept In the quiet and someone hasn’t approved it’

in the other scenario it’s not fraud as such if company A accepted fixed price quote from company B - it is however fraud if company B are charging billable time and supplies and thenusing them on a job not costed for and billable for - but the fraud is against company A by company B

As someone who has a business, Two scenarios here and I’m not sure which it is

scenario a - company a ( and the ‘friends’ relative - 100% uses his own salaried people and lets them do work , buy stuff and pays them and gets an equivalent reduction against corporation tax - only really works if it’s a company that are profitable and paying corp tax and often VAT - whereby there will be VAT ‘out’ but no VAT ‘in’ - hence a rebate or an offset if VAT due in general

scenario B - company A uses contractors for jobs from company B ( who said relative works for) and company B are sending in inflated invoices to company A to cover off work at Ops ‘friends’ house -

company A if in profit may not actually care , if they could do with a deduction against corporation tax- however almost certainly wouldn’t approve if they knew it was going on - but if they were on a fixed price job presumably company A were ok with the quote . If it’s inflated they could always have gone elsewhere where they aren’t fudging invoices to fix relatives places.

either way OP, it’s annoying but yes it does happen.

it’s only really fraud if all within company a if it’s ’kept In the quiet and someone hasn’t approved it’

in the other scenario it’s not fraud as such if company A accepted fixed price quote from company B - it is however fraud if company B are charging billable time and supplies and thenusing them on a job not costed for and billable for - but the fraud is against company A by company B

either way I wouldn’t interfere-

As someone who has a business, Two scenarios here and I’m not sure which it is

scenario a - company a ( and the ‘friends’ relative - 100% uses his own salaried people and lets them do work , buy stuff and pays them and gets an equivalent reduction against corporation tax - only really works if it’s a company that are profitable and paying corp tax and often VAT - whereby there will be VAT ‘out’ but no VAT ‘in’ - hence a rebate or an offset if VAT due in general

scenario B - company A uses contractors for jobs from company B ( who said relative works for) and company B are sending in inflated invoices to company A to cover off work at Ops ‘friends’ house -

company A if in profit may not actually care , if they could do with a deduction against corporation tax- however almost certainly wouldn’t approve if they knew it was going on - but if they were on a fixed price job presumably company A were ok with the quote . If it’s inflated they could always have gone elsewhere where they aren’t fudging invoices to fix relatives places.

either way OP, it’s annoying but yes it does happen.

it’s only really fraud if all within company a if it’s ’kept In the quiet and someone hasn’t approved it’

in the other scenario it’s not fraud as such if company A accepted fixed price quote from company B - it is however fraud if company B are charging billable time and supplies and thenusing them on a job not costed for and billable for - but the fraud is against company A by company B

either way I wouldn’t interfere-

As someone who has a business, Two scenarios here and I’m not sure which it is

scenario a - company a ( and the ‘friends’ relative - 100% uses his own salaried people and lets them do work , buy stuff and pays them and gets an equivalent reduction against corporation tax - only really works if it’s a company that are profitable and paying corp tax and often VAT - whereby there will be VAT ‘out’ but no VAT ‘in’ - hence a rebate or an offset if VAT due in general

scenario B - company A uses contractors for jobs from company B ( who said relative works for) and company B are sending in inflated invoices to company A to cover off work at Ops ‘friends’ house -

company A if in profit may not actually care , if they could do with a deduction against corporation tax- however almost certainly wouldn’t approve if they knew it was going on - but if they were on a fixed price job presumably company A were ok with the quote . If it’s inflated they could always have gone elsewhere where they aren’t fudging invoices to fix relatives places.

either way OP, it’s annoying but yes it does happen.

it’s only really fraud if all within company a if it’s ’kept In the quiet and someone hasn’t approved it’

in the other scenario it’s not fraud as such if company A accepted fixed price quote from company B - it is however fraud if company B are charging billable time and supplies and thenusing them on a job not costed for and billable for - but the fraud is against company A by company B

As someone who has a business, Two scenarios here and I’m not sure which it is

scenario a - company a ( and the ‘friends’ relative - 100% uses his own salaried people and lets them do work , buy stuff and pays them and gets an equivalent reduction against corporation tax - only really works if it’s a company that are profitable and paying corp tax and often VAT - whereby there will be VAT ‘out’ but no VAT ‘in’ - hence a rebate or an offset if VAT due in general

scenario B - company A uses contractors for jobs from company B ( who said relative works for) and company B are sending in inflated invoices to company A to cover off work at Ops ‘friends’ house -

company A if in profit may not actually care , if they could do with a deduction against corporation tax- however almost certainly wouldn’t approve if they knew it was going on - but if they were on a fixed price job presumably company A were ok with the quote . If it’s inflated they could always have gone elsewhere where they aren’t fudging invoices to fix relatives places.

either way OP, it’s annoying but yes it does happen.

it’s only really fraud if all within company a if it’s ’kept In the quiet and someone hasn’t approved it’

in the other scenario it’s not fraud as such if company A accepted fixed price quote from company B - it is however fraud if company B are charging billable time and supplies and thenusing them on a job not costed for and billable for - but the fraud is against company A by company B

either way I wouldn’t interfere-

Wtf? He is her family. He could be her dad or brother.

He's high up so must earn a lot so has probably offered to pay for the work through his company.

I think you're just jealous that she has well off family willing to do that for her.

Perhaps she pays in kind…….😉😉🤭🤭

If the person is employed by the company and redirecting contractors and the company is actually paying and unaware yes this is fraud.

Look on companies house and get the directors of the company details. write to them and their accountant and tell them of your concerns.

It is easily investigated.

That's right. Definitely don't tell everyone in the pub on Friday evening about your plans to steal from the local supermarket next week. Someone might open their mouth and fuck up all your well laid plans! Jealous bitches eh!

For what it’s worth, there are tax advantages to putting it through the business. It isn’t fraud just basic tax minimisation through legal avenues. I’ve done the same with family events to save on VAT.

For all we know, company A may have full knowledge of the work being done for a relative of their employee and it is not fraud if declared correctly. It is unwise to throw around accusations of fraud and embezzlement without any care or more importantly, EVIDENCE. OP's use of the phrase "business is having their books cooked" is pure hysteria.
I think the thread is totally motivated by jealousy and OP doesn't sound like much of a friend to the lucky recipient of these favours.

What makes you think they don’t know? And why are you so concerned?

Thank you for trying to explain, and I get the friend potentially receiving, but I have another but - in that scenario surely Co A would know that the goods or services they are paying for have not been received by them?

I think I’ve decided it’s giving me a headache trying to work it out and I best not apply for the 1% tv show.

Personally, I would not even know if my friend was getting something for nothing, and unless somebody was in danger and it’s a matter of safeguarding, it is none of my business. I am now thinking of my lovely garden shed which was a freebie in a tit for tat scratch my back exchange of skills. Should I be sitting on the naughty step?

That is fraud as your personal car expenses are clearly not a business expense. I'm sure this sort of low level tax evasion happens all over. What @doitellthem has described is much worse.

What do you think is being cooked? It would only be fraud if she’s paying cash and they aren’t claiming income. It’s not illegal to not charge for a service. What’s the problem exactly?
that they’re paying out of pocket? That’s their problem and their loss.

I thought OP said relative worked for company B, not company A (the one being invoiced).

If so, I question how the OP knows that company A is not being invoiced in line with the price agreed with company A for the work they have commissioned company B to do, and why if they are receiving invoices for other work that isn’t approved via purchase orders they have not noticed and would have approved payments for these fraudulent invoices.

It all sounds bizarre in terms of a) how the OP would know this if she does not work at company A; and b) because it wouldn’t be possible for this to happen if company A has the most basic level of appropriate financial controls in place, unless OP is saying there is a conspiracy to defraud and embezzle money from company A involving finance staff at both companies.

Not the same, because invoices aren’t being raised.

You need to get yourself a new hobby...

What she does is none of your business and you should not be describing yourself as her "friend".

I fail to see what "fraud" this lady is committing either.

It is tax evasion. It should bother people because it screws us all over - paying tax benefits society, illegally not paying tax only benefits the person doing the evading.

DH (a mechanic) doesn't charge me for labour when he fixes my car - is that fraud? To be fair, he doesn't charge me for parts either as I'd start charging him for dinner/cleaning the ensuite/other wifely "duties" and we'd soon see who owed who more. He does, however, put those parts through his business account. Also not fraud.

all you numpties quoting me, carry on. no crime or fraud is being committed here and you are just twisting what i meant, but you go off if it makes you feel better. op, jealousy is a very ugly trait.