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?

[DiscoDiva70]

OP
What have you decided to do?

[user1499786242]

REPORT REPORT REPORT

people like her are scum

[Ijustwantaquietlife]

Do hmrc even bother doing anything though?

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

[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

[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]

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

[mounyaandyiolanda]

ta1kn

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

[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]

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.

[mounyaandyiolanda]

Also, OP I sincerely hope you reported your acquaintance.

[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.