Active discussions

Meet the Other Phone. Flexible and made to last.

Meet the Other Phone.
Flexible and made to last.

Buy now

Please or to access all these features

Talk
AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

...to report friend to hmrc

366 replies

HMRCorNot · 02/02/2018 16:02

I have name changed for this

Close friend has at least 3 rental properties in prime locations. She Has been receiving rental income for over 10 years. Amounting to 6 figures(incl any mortgage amounts) Never declared.

She is In highest tax bracket so will be selecting no in drop down box for rental income on tax return which starts blank and then has two options yes or no - so no excuse to “forget” or not know.

I am also landlord and high earner so no jealousy. I find it immoral and unfair let alone illegal. She is surprised I declare!

Would IBU to report?

Can this be traced to me?

Can’t get comfortable either way.

Scared of reporting but feel ill that she feels she should be exempt from paying.

Wwyd? Aibu?

OP posts:
Whatshallidonowpeople · 02/02/2018 16:42

How do you know this to be true? She might be just telling you that to wind you up. She may not even own the properties

StorminaBcup · 02/02/2018 16:43

Surely she’ll be found out if / when she decides to sell / gift / or leaves the estate in her will. She won’t be able to do anything without declaring something, assuming she makes a profit on the sale.

I’d be wary of reporting anyone unless you know the full facts and you’re absolutely squeaky clean. What about the repurcussions among the rest of your friendship group? No one likes a tell-tale tit.

5plusMeAndHim · 02/02/2018 16:45

At present council tax information and HMRC info is not routinely shared. They only share Housing benefit info on earnings etc with HMRC. )*

I don't think the council know who owns each property, that is the land registry surely? There is no way HMRC have the resources or even the capability to cross check every property in the borough with the land registry, Plus that only tells you the owner isn't living in it, it doesn't mean he is charging rent to the occupants

Tipsntoes · 02/02/2018 16:46

How do you know she's not "selecting yes"? She could be selecting yes, declaring the income and then deduction interest, legal fees, letting costs, utilities, repairs until there's no "profit" which would mean there's no tax due.

OTOH she could have seen you as a prime target for a wind-up. How/why would you know what tax she's paying?

Report her if you want, you clearly don't like her or want her as friend anyway.

Hillingdon · 02/02/2018 16:48

I used to work for a big supplier to HMRC. They are really not as red hot as you might think. Think public sector and all that that entails. They employ people, give them little training and have any of you recently tried to get hold of them. Hanging for over 20-40 minutes so lets not think they are organised and on top of everything.

Jux · 02/02/2018 16:49

Cherrycoke, presumably if she were reported then they would have cause to collect that information from whatever agencies hold it, and then they would join the dots?

rocketgirl22 · 02/02/2018 16:50

I wouldn't report it, not if she was a close friend, but I would remind her that tax evasion carries a custodial sentence, and ten years all totted up is going to put her in the more serious bracket. Fraud is a very serious crime in this country, and the prisons are littered with half decent people making stupid decisions.

Her life as she knows it would be over, if she has dc this will have a serious hugely negative impact on them just how could it be worth it?

MyBrilliantDisguise · 02/02/2018 16:51

Your friend should read the latter part of this article.

ohfortuna · 02/02/2018 16:51

There is no way HMRC have the resources or even the capability to cross check every property in the borough with the land registry, Plus that only tells you the owner isn't living in it, it doesn't mean he is charging rent to the occupants

But they dont need to pay a person to look through lists of names, it's just a matter or writing a bit of computer code to generate an algorithm which will compare the data bases to find those likely to be owned by landlords who are not declaring

isnt itConfused

IrisAtwood · 02/02/2018 16:52

I would definately report. She benefits from living in this country so she should be paying her tax. All of it.

Thiscantreallybehappening · 02/02/2018 16:52

All these people saying don't report it, call yourself a friend etc. This is money that could be going into the NHS and other vital services.

ElenaBothari · 02/02/2018 16:53

I’d report her.

Hillingdon · 02/02/2018 16:53

You would be surprised who tips off HMRC for this sort of thing. Often the people committing fraud think they are almost untouchable (I know very foolish!) and boast to people about what they are getting away with having told them not to tell anyone else.

I certainly don't agreed with many on this thread who says its none of your business, who likes a tell tale etc. This is someone potentially avoiding paying tax. Why should they get away with it

GETTINGLIKEMYMOTHER · 02/02/2018 16:53

I would shop her, and wouldn't feel bad about it, either. I think there's an awful lot of this - I heard only recently of one medic telling another ditto that she was mad to be declaring her rental income, since, 'We never have!'

Since I have a rental property on which I have always paid all taxes due, it infuriates me that so many seem - with reason! - blithely confident of getting away with it - especially when there are now so many rental properties and every penny of tax is so badly needed.

Original poster
HMRCorNot · 02/02/2018 16:54

To answer a few questions before I go .... I’ll pop back later on

I appreciate all replies.

I know she owns them - can’t explain why but i do

One will def be on btl

Yes I am open to being called a shit friend - I have noted in prior post that I have been selective with relationship status. Sorry

No not a reverse

Why do I care - because it’s fraud

Why do I ask here - because it’s a rock and a hard place.

Yeah tenants might be homeless but these are prime properties. Maybe in total £4K pcm rental (then deduct all allowable expenses) so I am sure they will be ok.

I know there is a tax liability because of rental income and when purchased the mortgage needed would be lower. Plus I am a landlord (one property) and do my tax return. And have to pay tax.

OP posts:
rocketgirl22 · 02/02/2018 16:55

thiscantreallybehappening

I agree totally, but I would try and talk some sense into her first if she was a close friend, as it is better to repay the money than for it to be lost forever to the tax payer and said friend be in prison (also costing the tax payer a considerable sum)

ThereWasABaboon · 02/02/2018 16:55

I wouldn’t dream of reporting a friend for this. You are a crap friend.

Well she's not a real friend anyway is she if you want to do this?

If you want to do it I'd be careful if I were you. You don't know for sure that she is failiing to declare this income. It could be bravado chat. If she does declare it and you report her for tax evasion, that is seriously defamation. If she finds out about it and can trace it to you, you may be on the wrong end of a lawsuit.

MyBrilliantDisguise · 02/02/2018 16:56

HMRC would know because their computers are linked to the Land Registry.

Cherrycokewinning · 02/02/2018 16:56

“I wouldn’t dream of reporting a friend for this. You are a crap friend.

Well she's not a real friend anyway is she if you want to do this?“

She’s not a real friend if she tax dodges? Eh? What does her tax evasion have to do with her ability to offer friendship?

MyBrilliantDisguise · 02/02/2018 16:57

Why would it be bravado chat? That's like saying you stole a coat from a shop when you'd paid for it. Why would anyone do that?

HRHPrincessMegan · 02/02/2018 16:58

I can understand your frustration but I don’t understand why you don’t just confront her about it face to face. Reporting her seems like a cowardly compromise - it resolves the issue in your eyes and without awkwardness and you having to test your friendship. I’d ask her directly knowing full well that it would put the friendship on the line. Clearly you’re friend’s lack of judgment/morality in this matter has you questioning whether you want to be mates anyway.

Awwlookatmybabyspider · 02/02/2018 16:58

Reading your comment from 16.21. It seems like you've already had the discussion, so. She'll probably figure out that it was you who reported her. Thats if you do report. People aren't stupid, are they.

Gemini69 · 02/02/2018 16:59

you don't need a reason.... it's Fraud ... Report her.. Flowers

Thiscantreallybehappening · 02/02/2018 17:02

I just don't understand some of these comments. We all desperately want the NHS and other services to run smoothly, be properly funded but seem to accept that some people don't have to pay their fair share of tax. Where is any of that okay.

If this person was reported. HMRC would look into her situation and if it turns out she was paying tax and it was bravado then no further action would be taken.

lynsey91 · 02/02/2018 17:02

I know someone who has been renting a property out for at least 20 years and they don't declare it so, no, HMRC are not hot on catching tax avoiders