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Original poster

To report her for tax evasion?

537 replies

hooveringhamabeads · 20/08/2017 12:32

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?

OP posts:
impossible · 22/08/2017 13:17

Taking a certain percentage of all of everybody's income is fair. Are you sure you think this W0nder?

People earning £100k per year are charged tax and NI totaling 34k. Are your really sure 34% tax level should apply to everyone, yourself included? That would mean someone on £20k would take home £13.2k and those earning 10k would take home £6.6k.

Personally I couldnt afford to do that, nor could most people I know - but if you feel inclined there are plenty of charities that could use your extra income - food banks for instance.

PigletJohn · 22/08/2017 13:27

"People earning £100k per year are charged tax and NI totaling 34k."

assuming, obviously, that they don't make any pension contributions.

Which might be foolish, or because they were in very unusual circumstances

impossible · 22/08/2017 13:28

Yes - exactly. That's minimum (assuming they pay it)..

user1489675144 · 22/08/2017 13:38

What with all the 'you are jealous' comments - dumb comment

Tax fraud affects us all and if everyone paid what they owe we would all pay less or have better services.

Report her, if she has earned as much as you say and also claim benefits to which she is not entitled then so be it - she will be found out. If she is innocent then, on investigation she will be shown to have paid what she owes.

Interesting how many moan about tax/reduced public service and yet happy to turn a blind eye to blatant tax fraud.

user1489675144 · 22/08/2017 13:39

THIS "You would be unreasonable NOT to report her. Even ignoring the fraudulent benefit claims, £52k pa would give £15k of tax. That is £15k that could go towards giving nurses a higher wage, fund free breakfasts for primary school children, mental healthcare etc. Please don't argue she is being unreasonable and at the same time complain about Government cuts." to the dumb posters who say you are jealous!!!!!!!

Ta1kinPeece · 22/08/2017 13:58

The form for reporting that has been linked to on here does ask for the details of the person doing the reporting. If you leave it blank do HMRC still look into it?
Yes

You could send her an anonymous letter saying you are aware of the situation and if she doesnt start declaring her income you will report her to the tax office in, say, six months. That gives her time to get things in order.
And if she works out who sent it ......
stupid
just USE THE HMRC FORM - DO THE RIGHT THING

mounyaandyiolanda · 22/08/2017 14:25

ta1kn

Leave it. When you offer same advice and then you see some of the responses it really does make you wonder, doesn't it?

mounyaandyiolanda · 22/08/2017 14:26

*sane

impossible · 22/08/2017 14:47

ta1kn A letter can certainly be anonymous (snail mail. Presumably she has a number of clients/customers. I suggest this because a similar letter was sent to someone I was a customer of and he very quickly got his accounts in order. If she is told HMRC will be contacted in x months it gives her the chance to approach them first (if she hasn't already).

She certainly needs to pay her tax but I'm not sure I understand why the priority needs to be her being caught out by HMRC. Seems to be driven by malice on the part of the OP.

mounyaandyiolanda · 22/08/2017 15:16

impossible

Only HMRC can force her to pay Confused so perhaps that's why the priority is being caught by them.

Ta1kinPeece · 22/08/2017 15:26

mounyaan
Years ago I got so bored of writing the same tax crap over and over and over again on the ebay boards that I wrote a "me page"
it became well known enough that even the moderators referred people to it !

impossible
Under your scheme, how would the OP know whether her friend has sorted their tax or not?
Under my scheme its done and dusted

PoorYorick · 22/08/2017 15:30

She certainly needs to pay her tax but I'm not sure I understand why the priority needs to be her being caught out by HMRC.

What? Who else has the power to make it happen?

impossible · 22/08/2017 15:30

mounya Ta1kn

OP would be clear in letter that she WILL contact HMRC in x months - she would just giver her 'friend' a warning ahead of time.

PoorYorick · 22/08/2017 15:35

OP would be clear in letter that she WILL contact HMRC in x months - she would just giver her 'friend' a warning ahead of time.

FFS. That will hugely increase the likelihood of the woman figuring out who sent it, and give her a chance to cover her tracks. This is bloody inane. Tax evasion is a crime that penalises us all.

impossible · 22/08/2017 15:36

This happened to a small business I knew - they received a letter telling them HMRC would be contacted in x weeks so they might want to get their accounts in order before then.

I knew about the letter as I was a customer - they were trying to work out who sent it (they never did find out).

Upshot was they very quickly registered with HMRC and declared their earnings. They didnt really have any choice. OP's friend would be in same position.

impossible · 22/08/2017 15:37

'friend' possibly not the right word...

impossible · 22/08/2017 15:40

I think that OP has less chance of being identified if she sends a letter rather than contact HMRC online.

Anyway, bowing out now PoorYorick. Just a suggestion

Ta1kinPeece · 22/08/2017 15:59

I think that OP has less chance of being identified if she sends a letter rather than contact HMRC online.
Utter bilge.
HMRC have an impeccable record on keeping quiet about who tells on who - its their job.

"anonymous" letters can be traced

and its not up to anybody other than HMRC to actually investigate.

TronaldDumpy · 22/08/2017 16:18

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??

PoorYorick · 22/08/2017 16:21

I think that OP has less chance of being identified if she sends a letter rather than contact HMRC online.

How on earth do you reckon that? If someone contacts me directly, I know it must be someone with access to my contact details, and who has a relatively detailed knowledge of my financial affairs. Perhaps there would even be a postmark or an IP address, depending on how they contacted me and how stupid they are.

If HMRC got into contact, I'd have no way of knowing who tipped them off, or indeed if they'd even been tipped off.

PersianCatLady · 22/08/2017 16:24

mounyaandyiolanda
I know a guy who always trades as a limited company.

He will trade as one until the accounts need to be filed, allow it to be compulsorily dissolved and then start trading with another limited company.

As he never files accounts he never pays any tax.

The reason I know about this is that he loves to brag about his little scheme and Companies House records seem to confirm his story.

After he ripped off someone else I know they reported him to Companies House and they weren't interested as so many companies every year are compulsorily dissolved.

What would you do as a Tax Inspector if you knew someone was doing this??

PersianCatLady · 22/08/2017 16:36

KnightofWands
Please go and read about libel and slander.

Then it will become obvious to you how someone anonymously reporting suspected tax evasion could never be either libel or slander.

mounyaandyiolanda · 22/08/2017 16:39

persian

As a member of the public (which is the capacity I'd be acting in) I'd report him in a heartbeat

PersianCatLady · 22/08/2017 16:47

As a member of the public (which is the capacity I'd be acting in) I'd report him in a heartbeat
The person who he ripped off sent a whole load of information to Companies House about the fact that every 14 months he starts a new limited company and lets the previous one get compulsorily dissolved and they weren't interested.

Ta1kinPeece · 22/08/2017 16:48

persiancat
Companies house have little enforcement power and sod all willing.

HMRC are a different kettle of fish.
If you use the form to list all of the company numbers that you believe this person is involved with, HMRC will do the rest
he will not enjoy it.