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?

I think this sounds so unlikely as to be perhaps not as described.

She needs to be doing a tax return however much profit she makes and is she registered as self employed.

It's interesting how divided everyone is on this.

My personal opinion is that tax evasion and benefit fraud is mass theft. It irritates the hell out of me when I see long term benefit frauds/tax evaders get piddly little sentences. In 2014, they estimated £1.6bn of fraud - that's a lot of money that should be spent on legitimately supporting those in need.

All of the above said, the likelihood of you getting anything from reporting is likely to be low.

Does anyone know if I did report her and she was investigated whether or not she is told that they are investigating her for possible fraud or whether it just appears to be the regular kind of inspection that anyone who is self employed can randomly have ?

Report her!!! Why should other hard working people pay taxes and she not. Top it off she is claiming benefits.

This is why this country is in a mess

Yes, I wasn't expecting so many people telling her to keep out of it-maybe they are committing fraud too? Certainly with attitudes like this I can see why it is so widespread.

Definitely report. There's a specific helpline you can phone. Just give them as much information as you can and they will then do their own research. Banks, accountants etc have to report their own clients if they think anything is going on. If they do, so should you.

Why wouldnt you report her??

I could not think of a single reason not to. If she is legitimate then she has nothing to hide so no problem.

Don't listen to app the nosey people who wants to know what she does and are trying to get you to answer a lot of seemingly unrelated questions so they can suddenly like Poirot deduce what it is, then out you for their own satisfaction.

That's not why I'm being nosey. I want to know what she does so that I, too, can earn 52 grand a year, tax-free.

£1000 per week profit in a cash business that isn't related to sex or drugs (or perhaps money-lending) sounds really questionable. Are you sure she's not just exaggerating? My exh used to exaggerate our profits all the time and several times suggested to people that we didn't pay the right amount of tax/VAT. We did, of course, but it still got us an investigation - which is extremely stressful even when you are ultimately vindicated. of course, muggins here had to deal with it, not him

If you are very sure of your facts, or are really keen to put her through loads of extra stress, then go ahead and report her.

And yes, please do tell us what magical cash business gives a £1000 profit a week. There are relatively few cash businesses left these days.

I'd report her. She's stealing from all of us. It IS your business.

I'm struggling to understand how someone who is bright enough to earn £52,000 per year in cash legally and get away with paying no tax and claiming tax credits isn't clever enough to keep the whole situation a secret.

I never understand why so many posters condone benefit fraud/tax dodging and tell the OP to mind their own business etc.

I would report it OP, it doesn't matter what your motive is. As long as you're 100% sure and have all the facts and evidence to back up what you're intending to report.

AFAIK Hmrc gather evidence, confront the subject and give them the opportunity to fess up first. However my knowledge is only of benefit fraud and not tax evasion though I'd imagine the process is similar and technically she's doing both anyway.

She would normally be told she is being investigated for fraud and someone has reported her.

Is she something like a mobile hair extension fitter? They could easily make that money. Did she used to work for you or is she now with your ex or something?

I know people, mostly teachers, who earn quite a lot of money giving instrument lessons or private lessons after school. They are amazingly open about not declaring it and not paying tax.

Report. Easy. It is your business the next time that bus services get cut because of lack of subsidy, or you prescription charges go up, or school budgets go down or potholes don't get fixed. HMRC came after me for £150 (which I promptly paid) when I genuinely miscalculated my self assessment form. If you earn you pay.

Does anyone know if I did report her and she was investigated whether or not she is told that they are investigating her for possible fraud

It depends on what the investigation is for. Claiming benefits when you're not entitled to them is fraud and I understand is reported in a particular way. Never claimed benefits, so not sure.

Tax/VAT - anything can trigger an investigation, so they'll just write to her and tell she's due an investigation. Those saying if she's got nothing to hide, she has nothing to worry about, have obviously never been through such an investigation. It's unbelievably fucking stressful. Ours was in 2008 and afterwards I developed an ulcer that has plagued me on and off ever since, even though 'I had nothing to hide'.

Yes report. No question. You can do it anonymously.

I agree about the state of Greece. I agree about all the other people who do pay tax being cheated. I agree it is a crime and those who would not report are the types who would also allow old ladies to be scammed, children to be abused, public woods to become rubbish dumps etc. Because "it's no-one's business"

I usually think that those who would not report believe that if someone can get away with it - all credit to them - and quite often that person is doing just that themselves.

I also work in a business in which a lot of people work "off the books" and it means they can undercut me significantly. No tax but no accounts either - just £200 cash in the back pocket.

No fair - as the kids would say

of course you can make large purchases in cash

maybe she is buying good quality jewellery,high end/investment items

lots of people take cash,even high amounts i cant believe people think cash is not a preffered method by many

I was thinking hair extensions too Bluntness

I'd report and then not give it any more thought,

Also bear in mind that if she hasn't been doing whatever it is for very long, her tax probably isn't even due yet, depending on the structure of her business. Tax for self-employment and limited companies isn't paid in the same way as PAYE. (e.g. for a limited company it might not come due until 18 months or more after the business starts.)

If she's committing benefit fraud, that's a separate issue.

Yes report her. It's a crime and very wrong! I certainly would if I was you!!
And if sadly they investigate but can't prove it then not much can be done but at least give them chance to investigate. People like that are disgusting!

What worries me about reporting her is that I'm fairly certain she won't suspect me, but I know who she would suspect and I don't want to cause trouble for that person. So that's why I'd like to know whether she will be told she'd been reported or whether HMRC are more subtle than that.

If she has screwed your husband or something, then of course you should take the opportunity to get your own back. Why wouldn't you?