to consider reporting tax fraud

Bagsintheboot · 15/10/2025 10:40

itsnotfairisit · 15/10/2025 07:51

@Bagsintheboot I understand that. But do those sole traders brag about giving deals for cash because the payment can go under the table?

I am starting understand another facet of MN wisdom which seems to say keep your beak out and allow tax dodging

Generally not so for benefits fraud, but hey. Although I'd say that in many cases the two could be linked

I shan't report. But I am astonished at how many people have persuaded me not to. No wonder we're in a mess. And now I feel complicit too

Did he actually say he prefers cash "so it can go under the table"? Because that's not what your OP says and if so then that sounds more like an admission to tax evasion.

ShesTheAlbatross · 15/10/2025 10:27

RoseAlone · 15/10/2025 07:59

What a rotten thing to even think about doing. Why would you cause trouble for someone just for the sake of it? You seem like a nasty like a nasty piece of work

I think tax dodgers are nasty pieces of work

CitizenZ · 15/10/2025 10:25

I absolutely would report it. Almost 6 Billion is lost in the UK each year due to Tax evasion from small businesses. That's a lot of money that could go towards our services. These people have no problem using our NHS or sending their kids to school, but don't want to pay for it.

ForNoisyCat · 15/10/2025 08:39

itsnotfairisit · 15/10/2025 07:51

@Bagsintheboot I understand that. But do those sole traders brag about giving deals for cash because the payment can go under the table?

I am starting understand another facet of MN wisdom which seems to say keep your beak out and allow tax dodging

Generally not so for benefits fraud, but hey. Although I'd say that in many cases the two could be linked

I shan't report. But I am astonished at how many people have persuaded me not to. No wonder we're in a mess. And now I feel complicit too

You can report anonymously and Gov website advises you don’t tell anybody:
https://www.gov.uk/report-tax-fraud

Report tax fraud or avoidance to HMRC

Report tax fraud by a person or business to HMRC - tax evasion, VAT fraud, false, Child Benefit or tax credit fraud.

https://www.gov.uk/report-tax-fraud

ForNoisyCat · 15/10/2025 08:36

XWKD · 15/10/2025 08:01

You have no evidence.

i don’t think you need evidence. You report suspicion and let the investigators do the rest.

SapphOhNo · 15/10/2025 08:35

Dodging tax is everyone's problem. Report for sure.

We'd be up in arms if he was cooking the books to minimise CMS payments.

Cleikumstovies · 15/10/2025 08:29

You are complicit if you have suspicions and do nothing.
He may be happy with cash - that's not this issue. The issue is defrauding the country.
It's the same with benefit fraud. On an individual basis not a huge amount, but added up it's the cost of health services, schools, a better quality of life for the vulnerable, etc.

If you had suspicions about a child being abused would you sweep it under the carpet? Of domestic violence - yes, keep your beak out, she loves it really.

HelpMeGetThrough · 15/10/2025 08:23

I’ll happily pay in cash, I do for almost everything. What the recipient does as far as their tax is concerned, isn’t my problem.

CryMyEyesViolet · 15/10/2025 08:09

mutinyonthetwix · 14/10/2025 07:31

HMRC annually estimates that it loses more revenue from tax evasion by sole traders and small businesses than from big businesses and all individuals combined. In some years, small business and sole trader account for an estimated 80% of all lost revenue. This sort of thing really adds up.

This. The ultra rich on the whole aren’t the tax dodgers. It’s people like OP’s neighbour. I absolutely would report, it might come to nothing, he might not be doing anything wrong but at least I could skew at night knowing I was a good citizen doing my part

XWKD · 15/10/2025 08:01

You have no evidence.

everyoldsock · 15/10/2025 08:01

It’s your business and everyone else’s business. Tax dodgers are scum. I wouldn’t hesitate to report and would probably enjoy doing so.

Are you or his employees on his radar at all? Just wondering why you suspect it could be dangerous?

RoseAlone · 15/10/2025 07:59

What a rotten thing to even think about doing. Why would you cause trouble for someone just for the sake of it? You seem like a nasty like a nasty piece of work

Original poster

itsnotfairisit · 15/10/2025 07:51

@Bagsintheboot I understand that. But do those sole traders brag about giving deals for cash because the payment can go under the table?

I am starting understand another facet of MN wisdom which seems to say keep your beak out and allow tax dodging

Generally not so for benefits fraud, but hey. Although I'd say that in many cases the two could be linked

I shan't report. But I am astonished at how many people have persuaded me not to. No wonder we're in a mess. And now I feel complicit too

OP posts:

Bagsintheboot · 14/10/2025 14:24

BadgernTheGarden · 14/10/2025 13:52

As long has he has books that show the cash payments to his business, including VAT if required and his wage bill, and his workers have proper pay slips with tax and NI deducted, he has no need to fear being checked out by HMRC. But there is really only one reason for running a cash business these days, or for working cash in hand, which is why you are now often asked where the money came from if you open savings or investment accounts.

Show quote history

Not at all. There are numerous small businesses and sole traders who don't take card payments because the fees are too expensive, for example. You must have been in a shop at one point or another where there's been a sign which says "please pay in cash if you can". There have even been publicity stunts like certain pubs going cash only to try to keep the use of cash going.

As for cash in hand payments to casual employees - again, very common. I do the accounts for no fewer than five businesses (stables, shoots) where the casual day-staff are paid by cash and the permanent staff paid via BACS. The cash payees get taxed and get payslips just the same.

BadgernTheGarden · 14/10/2025 13:52

Bagsintheboot · 14/10/2025 13:28

Sorry, but what evidence do you have of tax evasion?

Preferring cash payments and paying workers cash in hand isn't tax evasion. It can be a symptom of it, but in itself it's a legitimate activity.

As long has he has books that show the cash payments to his business, including VAT if required and his wage bill, and his workers have proper pay slips with tax and NI deducted, he has no need to fear being checked out by HMRC. But there is really only one reason for running a cash business these days, or for working cash in hand, which is why you are now often asked where the money came from if you open savings or investment accounts.

EmmaStone · 14/10/2025 13:50

Dbank · 14/10/2025 12:03

He may of course still be paying and declaring the tax, but I very much doubt it..

Indeed a tough call to report him, and it may be impossible for HMRC to prove, I probably wouldn't, unless he was a complete cock.

I fear that with tax levels now so high it's become normalised for some people to evade, especially as it's so easy to do. No defence but some business are viable if they pay all the tax that's due.

Re: HMRC not being able to prove it anyway - I used to do some work with tax investigations, and remember one case where an indivdual was suspected of tax evasion via cash payments. They basically insisted he explain how he paid for the Rolex watch on his wrist, his home, his car....If you can't prove it all adequately, they will make an assessmenet based on an estimate, and that never falls in your favour!

But yes, the normalisation of 'just ask your tradesperson for a cash discount' is rife.

BadgernTheGarden · 14/10/2025 13:41

ProfoundlyPeculiarAndWeird · 14/10/2025 07:33

I wouldn't report him for tax fraud. I feel much more angry about super-rich people and big business paying too little tax than I do about sole trader-type businesses.

I'd feel more concerned about the cash payments to casual workers, as that suggests he may not be complying with his more general employer responsibilities, which might make his employees vulnerable to exploitation.

I wouldn't report it, though (unless perhaps I had evidence of an employee suffering negative consequences from an illegal practice).

Generally the people who accept cash payments for work are also dodging tax and NI and are quite likely on benefits as well because, poor things, they earn nothing (legitimately), or they are working in the UK illegally, it's all part of the black economy. I would be tempted to report it, it costs us all money in taxes, it just seems to be acceptable and even something to brag about. HMRC do take these things seriously these days.

ForNoisyCat · 14/10/2025 13:38

itsnotfairisit · 14/10/2025 07:22

A neighbour has boasted to us that he prefers cash and offers incentives for customers to pay cash for his goods and services (he juggles several businesses). Additionally he says he pays cash to casual workers. The cockiness astounds me, and I wonder what would happen if his activities were reported. He seems so open about it!
I know there are bigger problems out there but for some reason this really bugs me.
I should add, that decades ago someone reported my parents for tax fraud. A thorough investigation nearly broke them, but proved them innocent. It was a malicious report. If I reported the neighbour it wouldn't be malicious, simply reporting what he told me (and others).

With self employment it’s likely that he has formal income that is taxed im addition to the cash (informal). If he is paying tax as self -employed hmrc probably assumes he earns a certain amount of cash and charges him accordingly. It’s a bad as mail gars and car washes that insist on cash payment.

Onlyonmumsne · 14/10/2025 13:36

itsnotfairisit · 14/10/2025 13:14

@Dbank chicken and egg though isn't it? Tax levels might be lower with less evasion.
But you are right - he is a complete c@ck. Former councillor who breaks the conditions of planning permissions with apparent impunity. And his employees (the ones he boasts of paying cash to) are thugs who threatened someone in the village. So I guess part of my motivation is to try to put this ghastly man back in his box. But it's also part of the reason I hesitate - could be dangerous.

@Onlyonmumsne you wouldn't contact the police if someone threatened you? That's exactly what the police are for!

You are planning on doing something to wind him up and cause a lot of personal stress to the bloke so depending on their character they may threaten you as a result. Just keep your nose out and any potential threats and phone calls to the police won’t even happen, just like he might not even be tax evading. Seriously how pathetic is this of you, unbelievable. Get a hobby.

Shr3dding · 14/10/2025 13:30

MN is a strange place, any thread about a trader asking to be paid in cash will be full of posters saying he must be a terrible tax evader yet here posters say mind your own business, it's not that bad

I used to work with someone who'd previously worked for HMRC and she said they got a lot of anonymous reports to investigate, I think you can do it online

Bagsintheboot · 14/10/2025 13:28

Sorry, but what evidence do you have of tax evasion?

Preferring cash payments and paying workers cash in hand isn't tax evasion. It can be a symptom of it, but in itself it's a legitimate activity.

Original poster

itsnotfairisit · 14/10/2025 13:14

@Dbank chicken and egg though isn't it? Tax levels might be lower with less evasion.
But you are right - he is a complete c@ck. Former councillor who breaks the conditions of planning permissions with apparent impunity. And his employees (the ones he boasts of paying cash to) are thugs who threatened someone in the village. So I guess part of my motivation is to try to put this ghastly man back in his box. But it's also part of the reason I hesitate - could be dangerous.

@Onlyonmumsne you wouldn't contact the police if someone threatened you? That's exactly what the police are for!

OP posts:

Onlyonmumsne · 14/10/2025 12:09

itsnotfairisit · 14/10/2025 08:09

@Falalfni guess this is what worried me most. I have no idea how anonymous the system is.

sure he could guess, but tbh I wouldn’t be worried about that. He can guess away. And if he threatened me I’d respond with a call to the police or a solicitors letter. But if he’s offering cash deals to as many people he claims he is, then it’s quite a wide net of people who could have reported

You seriously have too much time on your hands. What a waste of police time that would be- would probably cost more than any tax he might or might not be evading

Onlyonmumsne · 14/10/2025 12:08

Do not do this OP. Only on here will you get people goading you on. It’s none of your business and meddling in matters not your concern rarely ends well.

Dbank · 14/10/2025 12:03

He may of course still be paying and declaring the tax, but I very much doubt it..

Indeed a tough call to report him, and it may be impossible for HMRC to prove, I probably wouldn't, unless he was a complete cock.

I fear that with tax levels now so high it's become normalised for some people to evade, especially as it's so easy to do. No defence but some business are viable if they pay all the tax that's due.