Friend is committing tax fraud and thinks its legal

[DyslexicScientist]

She works as an estate agent and reading some sites thought that she could get a tax rebate for her travel card and uniform.

I did laugh at her, as clearly its in breach of the rules. She only very occasionally uses the travel card for work and doesn't cost her any extra money on top of the card she buys to travel into work / uses fo r leisure. She interpreted the rules very differently and claimed as if the full amount was all for work usage.

Also she claimed a uniform allowance , even though she doesn't have a uniform and just wears normal clothes. So this isn't allowed either.

To my shock hmrc have just approved it and given her almost £2000 back. I guess it wasnt looked at in any detail as for them its a small amount.

Firstly I'm worried that it will come back to bite her if they find out it isn't kosha. Secondly that is a lot of money she's got back, that she shouldn't be entitled into.

She's just dismissed my concerns saying they've approved it. When i doubt theyvhave, they've just taken her word and trusted what she said.

Wwyd? Back off or try to get her to speak toban accountant?

I'm a tax accountant
It stinks
Avoid at all costs
and HMRC can come back at ant time in the next 7 years
with interest

HMRC don't approve claims. Anyone can fill in a tax return in such a way that HMRC's computer will automatically send them money. The law puts the responsibility on the taxpayer for making sure that the claim is correct. HMRC will select a small subset of people for investigation, and if they find something wrong they will take action somewhere between reclaiming the tax, with interest, doing that plus charging penalties, or pursuing a criminal conviction.

Damm wish id claimed years ago!
My work told me id only get a few quid back lying bastards
What about travel?

I think it would be very hard she went for a night out or out shopping etc in her work clothes, whether they are normal clothes or not.

Totally agree with a pp, an accountant will find much more to claim for.
It's why you employ them, to apply the law.

Re travel you cannot claim for journeys to and from home to work. May be an exception for people who see different customers each day and have no permanent workplace such as a depot or office at all but this is unusual. Travelling once you are at work is allowable as wholly and exclusively.

Thanks talk in peace, as I thought.

The travelcard is difficult as how do you separate commuting, leisure and work costs?

Tbh if someone is PAYE I'm surprised they can claim any travel costs, if I have work travel costs I expense them with work.

Does the employer make her wear smart clothes. Different to every day clothes?

No, business casual type dress

Personally I would not allow the travel card on the info given here. However generally speaking some expenses can be apportioned between business and non business use and negotiated with HMRC if they did pick it up.

I do think a lot of people in the UK think tax is simple when it isn't.

I suspect just about everyone who is self employed for example (as I am) has lack of certainty. I hate it. I want tax rules to be as clear as day. But I am forced by the state wghich chooses to have unclear rules to make judgments every day on what is for work and what is not. It is a horrible process but to say someone is committing fraud in one of these unclear areas is a bit unfair. The body at fayult all this is a state which chooses not to make clear tax rules and leaves hundreds of thousands of people uncertain on a daily basis as to what is for their business and what is not.

I buy a travel card. Journeys for work related purposs on it are tax deductible. Every single day I note down what I expend for work and what a huge horrible hassle that is -thank you state .. not, for horrible burden. I had a work thing in London last week so can claim the travel cost. After I visited a hospital to see someone vbut the basic route was out from home to London and back. But to apportion that between work and home use is very very difficult. On a day when there was no hospital visit on the way home of course it's simpler.
I buy a newspaper - the FT - HMRC have said that is tax deductible for me. I also buy the Times. They allowed that too. Yet obviously some of the reading of the Times wuill be me reading stuff what is not related to my work. It is all very very unclear and I wish instead the state would say as they do with some people on VAT for your type of work the usual expenses are x% of your work and therefore you are allowed to claim that percentage. That actually is what has been done with landlords' wear and tear costs for years but that is now changing because the state has chosen for political reasons to plunge the landlords into more uncertainty because the state wins a political point by so doing.

Just be happy for her and hope for a decant Christmas pressie. If you get a bag of shit report her.

Does she thinks of you as a friend? I would have sussed you out as a frenemy long ago.
I would never slay off my friends on a forum. Especially mumsnet where you know full well toy will get a pat on the back for being so judgemental.

I also think she may be a pork pie seller... My OH recently did similar (chef, so definitely identifiable uniform, equipment, etc) & got back about 40 quid....

travel is a difficult one.
My dh uses the car mostly for business, hardly at all for anything else, not even shopping. However he doesn't have a business car but the family car that he claims 33p (whatever the amount is) per mile for work.

I think most people supply the information requested by their accountant and let them get on with it.
I was amazed at some of the things we could claim for.