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Original poster

to consider reporting tax fraud

39 replies

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).

OP posts:
ELO10538 · 14/10/2025 11:12

All you have is hearsay.

Rozendantz · 14/10/2025 08:10

On MN if you drive at 41 in a 40 zone you should be jailed, but anyone who screws the system and fakes benefits claims or lies about their business incomes etc, should always be left alone and you should never get involved.

In the real world, however, normal tax payers get pissed off at those who won't contribute correctly. I'd 100% report him.

Original poster
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

OP posts:
ComfortFoodCafe · 14/10/2025 08:07

Falalfn · 14/10/2025 08:05

Because op lives next door to this individual?
I wouldn’t report him for that reason only.
I would fear the repercussions - which would be right on my doorstep!

Show quote history

She clearly states in the op that hes told others. & its nothing to do with living next door to him?

HoskinsChoice · 14/10/2025 08:07

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).

Why can't you be angry about rich people/big businesses AND small businesses. They are all doing the same thing. In fact, most of the big businesses and rich are finding legal loopholes, they are not breaking the law. Whereas small businesses not declaring business, using cash, not paying staff properly is a crime. So ripping off you as a tax payer AND breaking the law. We don't have to pick a side - big or small business - we can and should go after them all!

RaspberryRipple2 · 14/10/2025 08:06

Receiving cash for services and paying employees in cash are not tax fraud though. If he’s not declaring that income and the workers are employees (which they probably aren’t) and he isn’t deducting tax from their earnings then that would be tax fraud - but you have no idea whether or not that is happening, do you? Unless he has outright told you he’s committing tax evasion, which seems unlikely. I don’t think you can report someone for using or preferring cash - it’s a perfectly acceptable way to run a business. I agree with you he may well be doing it to evade paying tax, but from what you’ve said there’s no basis to report.

Falalfn · 14/10/2025 08:05

ComfortFoodCafe · 14/10/2025 08:01

Considering most people wouldnt think twice for reporting benefit fraud, why wouldnt you report tax fraud? I would. Sick of all these crooks getting away with murder.

Because op lives next door to this individual?
I wouldn’t report him for that reason only.
I would fear the repercussions - which would be right on my doorstep!

ComfortFoodCafe · 14/10/2025 08:01

Considering most people wouldnt think twice for reporting benefit fraud, why wouldnt you report tax fraud? I would. Sick of all these crooks getting away with murder.

HoskinsChoice · 14/10/2025 08:00

mummymetalhead · 14/10/2025 07:27

Don’t go out of your way to cause trouble. It’s none of your business so leave it alone.

It's everyone's business! Tax pays for public services. Every single penny that is lost from our tax system into his greedy pocket is making the hospitals that care for you, the roads that transport you, the schools that educate you, the parks that entertain you, the emergency services that protect you worse. He is literally stealing from you. It is your business and everybody else's.

Original poster
itsnotfairisit · 14/10/2025 07:57

@ProfoundlyPeculiarAndWeirdi hadn’t considered that the cash payments might be worse. I guess I’d just viewed them as a side effect.

OP posts:
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).

Original poster
itsnotfairisit · 14/10/2025 07:32

I suspect HMRC wouldn't be interested anyway (or have the capacity to chase).

I'm interested though as to why you say it's not my business when I DO pay tax (and you probably do too). I make it my business to pay so why shouldn't he? We are approaching an autumn statement which may well see taxes rise for all of us (who pay). I think that's what's bothering me

OP posts:
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.

mummymetalhead · 14/10/2025 07:27

Don’t go out of your way to cause trouble. It’s none of your business so leave it alone.