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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:
MeYouYouMe · 02/02/2018 17:05

I'd report. If she is committing fraud then they will sort it out and if she isn't then no harm done.

Springiscoming123 · 02/02/2018 17:06

she sounds like she is royaly taking the piss

hate this REPORT REPORT REPORT

BMW6 · 02/02/2018 17:06

I worked for HMRC for over 30 years until 10 years ago.
At the time I left it wasn't at the Big Brother stage, some info is passed to them but certainly not all.
I dealt with a few cases where letting hadn't been declared and the info came by anonymous letter from family/friend. We then get all bank account statements (voluntarily from the taxpayer or from the banks direct) and its dead easy to identify undeclared income / mortgages.
They all eventually fessed up when presented with the evidence and had to pay all the lost tax plus interest and penalties, so they ended up paying far more than they would have done if they had declared at the time. Most had to sell at least one property to pay the tax bill - but some sold with tenants in with so people aren't necessarily made to move homes.

I remember one bewailing their lot as they were planning to retire abroad and having to pay their tax had scuppered the plans. Shame.

Drop them a line giving as much info as possible.

BMW6 · 02/02/2018 17:06

PS
You don't need to reveal who you are.

specialsubject · 02/02/2018 17:07

Mn is such a playground at times. Telling tales?

Report.

ThereWasABaboon · 02/02/2018 17:07

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?

Because people are idiots? Some people think that kind of thing shows they are rebellious or risk takers or a bit edgy or so clever for getting one over on the government. Or to pretend that they have more money and a disposable income than you.

Or (and this is a known method) to test your reaction to illegal/fraud activity. Say for example, the friend was looking to recruit someone to help her with something unlawful or bordeline unlawful (anything from under the table cash payments to workers or rolling out an under declared rental business ), you aren't going to come out and say "Hey Suzy I was thinking of getting all my mates involved in a Ponzie scheme but I need some help. What do you say?" You are going to test the water for a reaction to a lower level of corrupt activity. I'm not saying that's this situation as I think that's very very unlikely - I'm just saying there are other reasons why someone might make that up.

I've known people tell outlandish stories about being involved in pseudo-criminal money making schemes that are a totally made up to even the most obtuse.

AlpacaLypse · 02/02/2018 17:09

Report. HMRC rely quite heavily on tip offs to decide who to investigate. If she's actually completely legal, she'll be fine. If she isn't, then she can damn well contribute to public services like the rest of us who do pay our taxes do.

Hillingdon · 02/02/2018 17:10

I agree there are some real fools about. Why would you tell someone what you were doing?

  1. To show off
  2. To indicate you are not one of the 'little' people who have to pay tax?
  3. Because you are stupid and think that no one will report you

O

BabooshkaBabooshka · 02/02/2018 17:10

Definitely report her. There is an online form which is anonymous.

coffeeforone · 02/02/2018 17:13

I wouldn't report her IIWU. What she is doing is unfair and it is very illegal, but if she is a good friend then my loyalties would stay with her regardless.

She is being stupid to take such a big risk. I don't know how she sleeps at night, but as a friend (who obviously trusts you enough to tell you this) I would tell her she is very wrong but I wouldn't report her, no.

Thiscantreallybehappening · 02/02/2018 17:16

I hope all these posters saying - don't report her my loyalties would be with her as she is my friend ........ don't ever complain about waiting lists, doctors appointments, the state of the roads etc.

TalkinPeace · 02/02/2018 17:17

Report her.
Here is the form
www.tax.service.gov.uk/shortforms/form/TEH_IRF
It is totally anonymous.
HMRC will do whatever they choose to do with the information.
They will never tell you or identify you.

I've reported several people.
Its the right thing to do.

Bluelady · 02/02/2018 17:18

I'd start getting upset about her tax when all the huge multi nationals start paying theirs. This is a drop in the ocean.

MeYouYouMe · 02/02/2018 17:19

I hope all these posters saying - don't report her my loyalties would be with her as she is my friend ........ don't ever complain about waiting lists, doctors appointments, the state of the roads etc.

That's exactly how I see it.

TalkinPeace · 02/02/2018 17:19

I'd start getting upset about her tax when all the huge multi nationals start paying theirs
They are abusing badly written law.
She is breaking clearly written law.

ilovekitkats · 02/02/2018 17:19

Does she use a letting agent? The agency that I work at, recently received a letter from HMRC asking them to declare all the landlords that they have on their books. HMRC are very much aware that people are not declaring rental income and they are clamping down on it and about time too.

It would be bad enough if your friend did not do a tax return, but to do one and tick the no box means that she is blatantly lying on a government form. She cannot claim that she didn't know she had to declare it once she has done that!

Mummyoflittledragon · 02/02/2018 17:20

If this were someone pretending to be disabled to claim benefits, I’m sure you’d agree the person deserves to be reported.

This is no different. Please report her. I just paid 10k in tax on property. I declared because I’m honest. I earnt the money. So I should contribute to the state.

veuveo · 02/02/2018 17:20

Unless you know the ins and outs of her mortgages, you do not know what there is to declare.

TalkinPeace · 02/02/2018 17:21

Unless you know the ins and outs of her mortgages, you do not know what there is to declare.
Not relevant.
Tell HMRC what you do know.
THEY will check out the rest
THEY will decide if any action is needed.

Traffig · 02/02/2018 17:21

Is she an MP and does she have a duck house?

coffeeforone · 02/02/2018 17:21

I hope all these posters saying - don't report her my loyalties would be with her as she is my friend ........ don't ever complain about waiting lists, doctors appointments, the state of the roads etc.

This is a drop in the ocean compared to the amount unpaid via the tax avoidance strategies of the huge multi nationals - that is the problem.

PoorYorick · 02/02/2018 17:22

It's illegal for a reason. Report.

TalkinPeace · 02/02/2018 17:23

This is a drop in the ocean compared to the amount unpaid via the tax avoidance strategies of the huge multi nationals - that is the problem.
Two wrongs do not make a right

MapleLeafRag · 02/02/2018 17:24

Even if one didn't earn enough income from rental to pay tax one still has to inform the HMRC about any rental properties and fill in a tax return.

The people who do pay the appropriate tax are subsidising people like her.

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