To not feel sorry for my sister?

[GlummyMcGlummerson]

My sister has been self employed in a beauty role for 4 years, and I'd say about a third of her (more expensive) work has been passed by the books in order to avoid taxes - "everyone does it", apparently.

When lockdown was announced she obviously stopped trading and moaned how the government did nothing for self employed workers. Until the 80% funding was announced - but because she declared so little on profits she'll be getting hardly anything. She tried to claim UC but her DH is on £40k a year and is continuing to work from home so is entitled to nothing. We live in the NW and they have very outgoings so I think compared to others they're very lucky to still have £40k pa coming in, and a mortgage break.

I fell out with her today because I've been given furlough, and whilst many would love to have paid time off a 20% wage cut is huge for me with 2 kids and one income coming in - and she said "at least you're getting something it could be worse it could be me". I went off at her and said she has her DH's income and maybe this is karma for fiddling her books.

I don't want to fall out with her, if the last few weeks have taught us anything it's that life is too short for that but it really pisses me off that she thinks she is so hard done by in this.

I’m not sure I would have said it, but you’re right. She’s reaping the rewards of her dishonesty.

I think a LOT of self employed people will be in her situation. TBH she’s already had her fair share by not paying taxes like the rest of us.

You are right, she should have declared her income correctly and now she is seeing the consequences of that choice.

I bet a lot of the deadbeat dads who decided to be self employed or work cash in hand to avoid paying child maintenance are also kicking themselves now.

I agree with you OP.. stay safe

YANBU it’s choice she made, no one made her not declare properly

Yes. And all those who have had the tax benefit of paying themselves dividends for years are also feeling it. Well, if you minimise what you pay in, this is what happens when you want something back

Karma

Tough for her. fiddling her books is illegal. Karma is annoying isn't it.

Ask her why she didn't save any of her undeclared income.

YANBU. Zero sympathy.

No sympathy! Perhaps she should have saved all that undeclared tax for a rainy day! Like today!

I wouldn't have any sympathy for her as she's been fiddling the system.

I think this whole situation is going to teach some people a very tough lesson in honesty.

I'm in the same industry as your sister, and have been for 18 months after retraining.

In my first 12 months of trading, I technically made a loss because of start up fees etc! I only saw the benefits and rewards of my hard work around 8 months ago (shortly before I filed my tax return).

Is it shit that I won't get any help as a result? Yeah.

Could it be a hell of a lot worse? Absolutely.

Do I feel lucky with what I have and not moan about it or ask for anything else? Yes.

So whilst I appreciate it will be difficult for your sister, she shouldn't have been a tax dodging little sausage!

@HermioneWeasley not all of us will due to timing.

I doubt if she will be the only one who has less money because of historic undeclared income.

Agree. anyone who doesn't declare their income deserves to get sod all from the govt.

Yep my cousin was telling me he puts little through the books as he gets nothing in return i did the debate of educating future nurses/doctors and using the nhs. He’s now got the violins out as he’s not getting anything. Surely he should have something left over from the £750 a week he used to get in cash 🙄🙄🙄

The hard thing to read in these threads are all the “well if you all you self-employed didn’t dodge your tax” when you absolutely haven’t dodged a single penny of tax, and now for that reason are entitled to nothing- even though if I was employed I could claim! And if I had dodged my tax I’d be under the threshold and get something.

I’m not saying your sister is right, far from it, but I do wish people would stop tarring the self-employed with the same brush

I read another post on here recently where this has happened. Honesty is the best policy.

There will be lots of people in the same situation now. Unfortunately I have no sympathy for the tax dodgers.

No sympathy for your sister at all, her tax avoidance has come back to bite her. What a shame.

I agree @BlueVeins, I pay every penny I should do in tax and I'm proud to do it. Not all SE are tax dodgers.

It could not be more fair! System is based on what people declared, what other way could there be?

@BlueVeins agreed. I’m a sole trader. I have put everything through the books. Don’t get any benefits (sick pay, paid holiday, pension) that’s my choice. I’m just over the profit threshold and will get nothing. I accept that, the gov has to draw a cut off somewhere (although it annoys me the suggestion we are all on average of 200k). But as you say please don’t tar us with people who are dodging tax.

YANBU, basically, she's already had it. Welcome to our world.