Private tutor not paying tax??

[Sudburyswan]

Hi,

we use a private tutor for our son -just an hour per week. A nice guy who works at a local secondary school. He also tutors some friends kids and I’d estimate he’s earning £100 during term time on top of his teaching salary.

When he was here last weekend I was working in my tax return and I was moaning!! He made the comment “ I’m glad I don’t have to do that”- well surely he should be?

I know he’ll get the £1000 trading allowance but I still reckon he’s got 3-4 k of potential undeclared income. We pay him by bank transfer too.

I’m in two minds whether to report this.

surely hmrc’s systems will pick up this money entering his account??

Not according to government stats.

Do you know this to be a fact tho? Can you list the companies, what taxes they are avoiding and the amounts?

I think in a few years time cash payments will be restricted. The only rational explanation for regularly receiving (and often making) cash payments among anyone of working age now is tax avoidance.

This is just not true. There are endless reasons why people might prefer to be paid in cash. I pay my cleaner cash, I have offered bank transfer and she said that actually she prefers the cash as she leaves us, goes directly to the supermarket and likes having the notes so she can manage her budget. That is her choice and perfectly valid. She has also said in the past that she doesn't live near a cash machine and likes using cash for giving her kids pocket money or paying for things at school - schools round here are still all cash or cheque for things like trips, parties, school shows.

I have no reason to think she is not paying her tax - during Covid she was able to claim the self-employment support thing by declaring her income.

I also receive quite a bit of cash at certain points in the year - many of my customers are from overseas and transferring me money into my bank account costs as much as the payment in fees, or they send through paypal and that costs me money too. So I tell them to wait until they see me in person and give me cash. And I declare everything too.

Have you been living under a rock?? A quick google search will tell you all you need to know

It's not illegal tax evasion. The big firms are using LEGAL reliefs and exemptions. If government(s) wanted to stop them, they could do so, but there would be other consequences, such as firms offshoring even more. Having lower taxes has helped the Irish economy enormously by attracting international firms to set up their EU headquarters in Ireland, thus increasing employment in Ireland. You really have to look at the bigger picture. Even Blair/Brown embraced "Sweetheart" deals with multinationals to get them to locate in the UK. Also, there were sweetheart deals given to Olympic athletes to attend the London Olympics in 2010 - they were effectively granted tax exemption from any taxes they would otherwise have become liable to pay by virtue of the time they spent in the UK for training and the duration of the competitions itself.

Any huge firm genuinely ILLEGALLY evading tax would get the full weight of the law thrown at them. As it is, they're so big that they can "negotiate" their tax with the tax authorities in which they operate.

In other words no, you can’t. Just peddling rumour and gossip on the internet. Thanks.

If it was never due, as entirely legitimate tax planning takes place, how is it lost?