To report her for tax evasion?

[hooveringhamabeads]

I know of someone who is making around £1k a week, but hardly declares any of her income (she doesn't pay any tax at all so declaring less that £10k of it). She also claims tax credits.

I don't particularly like this person and am tempted to report her. Problem is, pretty much all the money she receives is in cash, so is there any way that the HMRC would actually be able to prove or disprove what she's earning?

[Ta1kinPeece]

mounyaan
The chap has been deducting CIS from all of his subbies but not filing returns or paying it over.
So the subbies cannot get their refunds (my client is owed around £11,000)
and he owes HMRC around £70,000
but the CIS team do not take calls unless you go visit them and I live a long way from Belfast.
Taxes can be taxing.

[mounyaandyiolanda]

Also, OP I sincerely hope you reported your acquaintance.

[mounyaandyiolanda]

Oh ta1kn different sides of the barrier but the same goal it would seem

All HMRC and accountants want is for taxpayers to pay the right amount of tax.

[Ta1kinPeece]

mounyaan
LOL
Friday evening is when your servers work the fastest !
I'm one of the saddos who files on Christmas day as the response times are lightning quick

But yes, the sun will be below the yard arm shortly.

Disco
The other thing to bear in mind is that most investigations are very, very low key.
I reported a guy a couple of weeks ago (giving my name as HMRC will need to come back to me and I wanted the chap to know whence the trouble came). My spies tell me he is being watched but nothing is seeming to happen yet. It will.

[mounyaandyiolanda]

ta1kn

It's FRIDAY! Put down the tax manuals and feet up!

[DiscoDiva70]

I see what you're saying but in my case its not about someone bragging.

[Ta1kinPeece]

Disco
You have to bear in mind that people are not likely to shout about a revenue query.
They are also likely to try to change as little as possible in their lives to minimise the fines.
And there is still the chance that the evidence you submitted was contradicted by other evidence that HMRC have access to.

I know one of my clients was reported after bragging in the pub repeatedly but as what he was telling people was 90% bullshit, HMRC drew a blank.

Company enquiries always take longer to resolve
and of course the owners liability is limited to the share value

[DiscoDiva70]

I reported the person I know almost two years ago (and also sent off what I believe is strong evidence through the post)... I did it anonymously.
I also feel as if nothing has been done as I think I would know if something had.

As two years has gone by, should I assume HMRC have disregarded what I've told them, or could they be biding their time?

I now have stronger evidence but unsure what to do as I don't want it to be ignored. Any advice?

[Ta1kinPeece]

Ijustwant
Do HMRC do anything?
It depends.

When they investigate fully with all of the facts they may find no case to answer.
people talk utter bollocks about their financial situation. Many of my clients brag stuff that bears no relation to what I'm putting on their actual returns

It may be that the errors / omissions can be handled with clawbacks and low level penalties that are within HMRC's rights to collect without a prosecution.

They may be able to do an attachment of earnings or seizure of assets - again with nothing going though the open courts.

They may be biding their time - they have several years to act after all.

I've reported several and only in one was there a public outcome richly deserved

[Ijustwantaquietlife]

Do hmrc even bother doing anything though?

I've reported two people and nothing has happened, and I'd know if it had.

[user1499786242]

REPORT REPORT REPORT

people like her are scum

[DiscoDiva70]

OP
What have you decided to do?

[DiscoDiva70]

Thanks Ta 1kinPeece

The person I know who is working cash in hand has been falsifying invoices (and wrongly claiming tax credits) so there's definite fraud been going on.

[Ta1kinPeece]

Disco
The rules (from my side as an accountant trying to get around HMRC) are -
Standard enquiries can only go back 6 years 11 months to cover errors and omissions.
If during that there is any evidence of deliberate concealment / fraud / criminality, they can go back 20 years.

There are also rules against "fishing trip" enquiries, but as HMRC are theoretically all one organisation now, tax investigations tend to be more integrated.

[DiscoDiva70]

Sorry I've just read that mounyaandyiolanda has mentioned people's behaviour 're going back 20 years.

[DiscoDiva70]

How do HMRC decide whether to go back only 6 or 20 years?

[coddiwomple]

Threatening someone to report to the relevant authorities for their illegal activities is in no way shape or form blackmail or harassment. At worst it's a warning, it's not a threat to announce you will be doing something perfectly legal. It's a bit daft, just report and get on with your life.

Not sure if "NOT" reporting an illegal activity, meaning becoming an accomplice, is legal in this country.

[trannywhitherwax]

Slightly saddened at the majority reaction of MYOB. I'd just report her. Since when has tax evasion been okay?

[vixsyn]

I meant *nation

[vixsyn]

"family and neighbours spying and reporting on one another.I think a few pounds in tax revenue does not justify an Orwellian society:"

Try 34bn pounds.

More than eight times the amount "benefit fraud" costs the nations, according to the government's figures.

[Lovelymess]

Of course you should report her. It's against the law. I can't believe the amount of people telling you to mind your own business

[Lifechallenges]

I've always been on PAYE in private and Public sector. My choice of career etc
However I know tons of people who work for cash in hand and they seriously do not declare it all - school staff who babysit for pupils every week, or run extra sports clubs, odd job men, cleaners, gardeners, sports coaches - list is endless but all acccepr cash payments lol the time . Its so easy that I think .. why not, everyone else is'

[Permanentlyexhausted]

TronaldDumpy
Ha ha "anonymous letters can be traced". Rubbish. That's why they are anonymous. Do you really think HMRC has the time/inclination/methodology/finance etc etc etc to try and trace??

Ha ha indeed! It seems your grasp of accurate facts is about as good as that of your namesake!

Firstly, anonymous letters can, in many cases, be traced.
Secondly, of course HMRC would not be tracing the anonymous letter. Why the fuck would they?
Thirdly, sending an anonymous letter threatening to report someone could be considered blackmail or harassment and could be a police matter. It is they, or the recipient, who might feel inclined to try to trace it.

[HexagonsOptional]

Most of the people on here who think YABU probably tax evade themselves.

I most certainly don't. Public sector and have always paid my taxes.

I just hate HMRC.

[Potterhead113]

Most of the people on here who think YABU probably tax evade themselves.
It is selfish and immoral especially seeing as most of the people who do it use some kind of public service that is run on taxes. YANBU to report her.