Someone I know very well not paid a penny in tax in years

[mrsmusic]

Not really an AIBU... I have recently found out that BIL, who has been running two small businesses for a few years, has never registered these businesses, never had any books etc. It makes me so mad! We pay thousands in tax every year and to me it's stealing from society and making a mockery of those who do put in and contribute. If it wasn't someone so close, I'd have been on the phone to the tax people by now. I asked a close friend for their advice and it was to leave it, as what goes around comes around (e.g. he'll never be able to get a mortgage) and the tax office will catch up eventually. And I've nothing to gain from it, so I won't. WWYD? Honestly?

If you report him OP you are opening a major can of worms. Just keep well out.

He may well be declaring the tax on his personal tax return if it is not a Ltd company or a partnership. You just don't know for sure.

How do you know he's not paying any tax? Has he admitted this to you personally?

"Chen- yes; of course there are nuances, but those are taken into account when action is taken. Just as with any crime, where there are mitigating circumstances, this is factored in at the point of sentencing, by those responsible for making such decisions."

hmmm.......... janey68 the action taken against the bankers who were in large part responsible for the economic collapse and the longest recession in modern history doesn't seem to have taken into account the misery it caused; unless of course ongoing huge bonuses constitute that harsh a sentence, in which case I'd like some of that punishment sent my way.

Mollymole said mrspoc
what are you talking about - he does not have to register a business
if you become self employed you have to INFORM HMRC within 3 months of starting - you do not have to incorporate unless you are a Ltd company - is it this about the Limited Company you are talking
suspect there are a number of 'wind ups' on here who are saying theft (tax evasion, benefit fraud) is ok - and if they really believe this then i would be quite willing to 'shop' them to DSS/HMRC in the hope that they could get them on something

MollyMole read what i said. You do not have to register as self employed i.e companies house but your right about informing HMRC. Also you do not pay VAT unless you register as VAT. You do not even have to register for VAT even if you turnover more than the £61k.

There is also a tax threeshold and other tax benfits.

I ask again. How does Op know he does not pay tax?

As someone who has run a company for many years I cant really see the benefit of not being registered if you are have a decent turnover. There are so many things you are able to write off legitamately under the business that it seems absurd not to have a limited company. Many high earners will do the same. Are you sure they aren't referring to VAT? Small businesses with a low turnover dont need to register for VAT. I have paid a sickening amount of tax over the years but made a decent profit and anyone not really isnt 'in business'. Smells a bit fishy to me.

I'm not sure of your point Chen. What example of law breaking are you giving where someone has not received an appropriate sentence?

And of course, there are cases where the consequence isn't commensurate with the offence, and that's wrong, but you don't put that right by ignoring other wrongs!

However, I really am unclear what case you are referring to

aquashiv - same here. I set up last year and registered VAT immediatly because we forecasted a turnover of £200k. Mad not too concidering what we can claim back.

But still how does the op know for sure? She hasnt answered if he is a LTD or Sole Trader and also how she knows he does not pay his taxes?

oh i would , we have 2 small interent busineeses and pay tax on both even though they dont make much at all but we both work too so goes over our threshholds, dh even declares tax on his when he sells stuff at the carbooty or when selling plants he has grown in our garden on ebay - he goes to the extreme in paying taxes in fact.

DrSpoc - are you seriously so socially conditioned that you think anybody who has an opinion that deviates from the conventional norm must be on a wind-up?

Now thats a point ...how many people would declare their ebay or carboot earnings?

If you're selling you own used items on Ebay or at a car boot sale you don't have to pay any tax.
Op really curious as to what sort of business he is running?

So...who gets a receipt from their window cleaner?

Bit windy today..mine blew off down the street.

Haha...reading back that looks like he farted down the street.

I don't have a window cleaner but my mum gets a receipt from hers.

at your farting window cleaner ,reeling

I don't know anyone that gets a receipt from a window cleaner

i know i reckon if you giving a service like washing windows/ gardening i bet you can not declare loads! Mines sales and purchases that go through paypal anyway so no chance of dodging. Dh buys stuff of ebay in bulk like wholesale stuff and sells at carbooty if he does one (along with his spare flowers) and then declares thems earnings to the nice tax man. You never see many female window cleaners do you ?

Your Mum gets a receipt from her window cleaner??

Why? Unless it's a business clean.

I'd shop him. If he's living with his parents it's not like he has a family to support or will be made homeless or anything.

I've been a window cleaner in the past...

Bloody hard work..especially in the winter..

February is the cruellest month.

Dodging tax / fiddling is not rare in the field of the self employed/people with own businesses. I have a friend who'd keep every receipt to file in her tax returns, even when they were nothing to do with her work, eg meals out with friends, etc, every single time, she'd pocket the receipt and put it down to expenses. It pissed me off and I never commented and neither did anybody else though I thought a bit less of her. Once she asked for a receipt for a taxi journey I paid for ...we were on our way to a funeral. I don't see that much of her now.

The taxman does check.
I know that one day it'll all come back to bite her in the arse and the same for your BIL.

He just gives everyone a receipt. Has wee cards with his name and he writes the amount and initials the back. I don't know why he just does.

If he is not registerd and thefore presumably not paying any NI of any sort, what will happen re his pension credits...

His girlfriend wants them to move in together. We were all talking a while back, the four of us, about how much they could get together on a mortgage etc. They just said that it'd be just on her earnings as he has no books, has never registered his businesses etc. (Although he has enough in assets to put down a 35% deposit). That's why when he had practically no work on during a period of a couple of months a couple of years back, and we had said to go and sign on, he didn't - he daren't. The last sentence was his girlfriend's words. I said he needs to be very bloody careful and she said she's tried talking to him about it.

I have friends who are tradesman who do the odd job for cash in hand. But not 10 years worth of earnings, full time.