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?

Report her. And yes HMRC have ways to check cash.
I work FT. I have to pay tax & NI like the majority of hard working people. Can't stand thieves who think it's ok to dodge the system.
After all she is stealing from all of us

she is nicking the money off the rest of us, so yes report.

Yes report her. No harm in trying. Mainly because I work my ass off and get taxed out of my wage. Whereas this person gets away with it, so yeah that pisses me off! I know there is plenty of tax dodgers, benefit frauds etc, but at least if you was successful in reporting her it would be one drainer less on the system.

Totally agree!

Paying every bit of tax (and/or vat) due isn't just something I do because it's right. It's something I do because I'm shit scared of the penalty for not doing it!

I've got two children, not only do I pay tax to provide for their needs (school, healthcare, emergency services etc.) but also to show them the right way and to provide for their futures both morally and through investment in our country.

(Still) Report. Please.

“Karma” refers to the cause and effect (on a person) of the actions, intents and deeds that that person undertakes. Bad karma is typically taken to mean you have not acted in a good way and – consequently - should be expecting some bad things to happen to you (in return for your poor deeds or actions).

I would question the “intent” of the thread originator as to whether the desire to report SUSPECTED tax evasion stems from genuine concern for the greater good. Add to that that we do not know the impact or consequences of any investigation on the SUSPECTED perpetrator.

Hence, the warning to be wary of incurring bad karma – and advice for the originator to contemplate (a) her motivations and (b) the robustness of her suspicions before proceeding.

The fact there is a thread in the first place surely implies the originator herself has SOME reservations about whether reporting her suspicion is appropriate? She has also admitted that disliking the person concerned is part of her motivation.

So, yes - I would caution thinking on this further.

With regard to HMRC. I am well aware of the mechanisms for reporting suspected tax evasion. I am also NOT suggesting HMRC would go out of its way to reveal the identity of the accuser.

However, the identity (or suspicion of identity) could emerge from other sources or causes.

Defamation happens when a false claim is made to a third-party other than the person defamed (wronged) and in the UK is legally split into slander and libel. So, if the SUSPECT is not tax-evading the accusation would be defamatory and would be inexcusable unless the accuser had had genuinely REASONABLE grounds for believing the accusation she makes. Depending on the motivations of the accuser and the damage done to the accused – i.e. the extent to which any HMRC investigation causes distress – this could be considered malicious conduct.

While most dealings with HMRC are fine, I have certainly had the odd past experience that has been very distressing (their errors not mine) and which they did not resolve rapidly.

I really don't understand all the yabvu responses. She is evading tax and also claiming tax credits fraudulently. That's two counts of fraud. I as a tax payers would want her reported. If she is doing nothing wrong it'll be a minor inconvenience to her.
OP report her, yes a part of it may be sour grapes but if she's commiting a crime she should be reported.

knight investigating someone suspected evading tax is a serious matter and the pursuit of such individuals is done professionally and to the letter of the law.

Surely for it to be slander or libel it has to be written or spoken about publicly. Contacting a government agency regarding suspected fraud would could in anyway come under that unless the op puts on facebook or leaflets the town etc.

I totally understand you being peed off. But in my experience people always get their comeuppance. I usually just watch on taking comfort in the fact I have behaved in a moral way

Report!

I was investigated. I assume randomly: I suppose it is possible that someone had reported me, but that never occurred to me as it seems to me wholly legitimate for me - a self-employed, largely self-declaring tax-payer - to be subjected to scrutiny.

I made complete disclosure and the HMRC was entirely satisfied. It was a nuisance but not for one moment did I mind it. Why should I? It would only have bothered me had I had anything to hide.

I think the attitude that you should ignore people dishonestly taking money out of the system that is there to provide for those who cannot provide for themselves by reason of age, infirmity, disability and so on, is utterly deplorable.

knightofwands
You clearly do not know how HMRC handle the information they get from the form I linked.
Read the form
The "accuser" does not give their name.

What you have written is utter tosh.
HMRC investigations will never be covered by defamation laws

Why do you want to help tax evaders anyway ?

Ta1kinPeece, was not suggesting the HMRC investigation would fall under defamation law.

If the investigation becomes known, its cause (i.e. an accusation having been made to HMRC) becomes known, and the identity of the accuser becomes known then AND there we only flimsy grounds for the suspicion then ...

knight
An accuser would not be known. Trust me.

Oh good God, Knight, you said something daft and several people have explained why it wasn't true. Stop digging.

And also accuser is not the right word.

Third party is better.

I was wondering whether the extent of her undeclared income and the fact she's claiming benefits might mean she would face being sent to prison. How would you feel OP if that was the result?

Ta1kinPeece,

I am not suggesting helping tax evasion or condoning it (legal or otherwise) but I am recommending reporters of suspected tax evasion consider whether there are genuine grounds for their suspcions and the rational behind their motivations for reporting before proceeding. This is a serious accusation and a responsible individual needs to take her responsibility seriously - not just throw accusations out there willy nilly with no thought to the consequences.

It is NOT ok to throw out such accusations lightly and then go for a cup of coffee.

I was wondering whether the extent of her undeclared income and the fact she's claiming benefits might mean she would face being sent to prison. How would you feel OP if that was the result?
If it was me doing the reporting I'd not give a shit.

HMRC decide what happens, not the OP
and if the other person is a crook, so be it.
VERY FEW people are jailed for tax crimes
normally HMRC go for financial recompense as then they get the dosh rather than costing money through the prison system.

That's nonsense, KnightofWands! IF the person is found guilty then it is her conduct that is serious rather than the report. If she is is exonerated then the report of suspicions is nothing more than a cause of some inconvenience in pursuit of a desirable social gain. Defamation really, really doesn't come into it.
I repeat, the seriousness or otherwise is linked only to the level of criminality.

knight
This is a serious accusation and a responsible individual needs to take her responsibility seriously - not just throw accusations out there willy nilly with no thought to the consequences.
ODFOD

I have used the form several times.
I will use it again
its part of the terms of my MLR registration

filling out the form merely allows HMRC to check somebody out.
If they think there is nothing doing, they do nothing

you are massively over dramatising how the system works.

Great suggestion for avoiding prison ...........avoid committing crime.

Besides - judges and magistrates give out sentences - not the person who reports the criminal.

OP has come on here asking what to do regarding a specific individual and hasn't reported anything yet, so I don't know where you're getting this idea that she's doing anything "willy nilly". Probably from the same thought procedure in which cosmic punishment comes from reporting a tax thief and anonymous reporting to HMRC to investigate constitutes defamation.

If the woman in question is all above board, nothing will happen to her. If she's not, justice ensues.

We don't know exactly how OP has this information, so it's possible she's talking rubbish. In which case HMRC either won't investigate or will find no case to answer. If she does have compelling reason to report, she's got genuine grounds and the responsible thing to do is to inform the authorities.

You've gone from "karma" and "defamation" nonsense to "I'm just saying OP shouldn't report it if she hasn't got any reason to think it's true". Well thanks!

Yabu. It's none of your business.