Would you still pay tax if you could get away with not paying it?

[Uneasyy]

NC for this.

My lovely friend is currently making thousands a week in a cash-in-hand job.

She’s happy, genuinely happy and living her best life. However she dropped into conversation the other day that she got no grants/furlough or anything over lockdown as she’s never put anything through the system.

I didn’t really know how to feel. On one hand it’s none of my business whatsoever, on the other - This situation has made me scared for our economy and future prospects and it’s made me feel uneasy about her as a person.

She said she’d lose thousands through tax and it would be pretty impossible for her to get caught.

So I wonder, if were 100% sure you wouldn’t get caught, would you still choose to pay tax?

AIBU to think that I still would?

Yes. I value the things that tax pays for, schools, hospitals, transport etc. I am a higher rate tax payer and would still pay more if needed without complaint. It funds our society, of which I, my friends and family are a part of.

I'd still pay. I care more about having the NHS and other local infrastructure than having some spare cash. Tax pays for so many things we take for granted.

Yes, because I’m not a selfish prick.

Yes I would pay tax. I couldn’t take from a system I wasn’t paying into. It would feel morally wrong to use the NHS etc knowing I was expecting others to pay for it when I wasn’t

Yes, I’d pay tax. But I don’t really understand what you mean about your furlough comment.

Thousands a week?! What is the job

I had the option to vastly reduce my tax bill - I didn’t and if she were my friend, I’d tell her exactly what I thought of her and end the friendship.

@Merryoldgoat

Yes, I’d pay tax. But I don’t really understand what you mean about your furlough comment.

I'm guessing the friend couldn't work through lockdown but couldn't claim furlough or self employed grants due to not being legit.

OP I'm with you, I'd still pay tax. Your friend isn't so lovely btw.

Yes I would. I can see the temptation if you're hard up,but if you're on thousands a week? Really?

I’m not a taxpayer as I earn below the threshold. DH is a higher rate taxpayer though (and I used to be). We do things to reduce DHs tax bill - charitable donations, pension contributions etc BUT every penny of tax due is paid (and we don’t get child benefit either).

I’m afraid I have very little respect for people who aren’t willing to pay their way as members of society. Tax mitigation is fair enough and I think most people would do that but tax evasion is awful.

Your friend is going to end up so fucked btw

Definitely in that situation. I don't approve of everything the government spends money on but I can't see how you can justify using the NHS, schools, police force, fire service etc without contributing. Even if I don't happen to need those services I still benefit from their existence. No one wants to live in a country with no police force or fire service or health service.

I also very much doubt it's so impossible for her to get caught. One man was caught when they analysed his tesco club card and realised that he couldn't possibly be buying so much shopping on what he claimed to earn.

I would pay more tax if I could. I feel it's my moral duty to society and I can afford it.

Thousands a week = in excess of £150k per year

Cannot see how this is possible cash in hand. Unless she’s a high-class sex worker.

As a tax advisor, your friend is going to be hugely penalised when court. It isn’t clever and it I couldn’t bear the thought of living looking over my shoulder constantly!

Caught* but maybe in court !

I’m employed so I pay tax, but my DH has been self employed for a while and hadn’t earn enough to pay any(even worse this year due to Covid), therefore we got no help through Coronavirus for him. That’s just the way it goes.

Does she declare anything at all? What about national insurance? Does HMRC know she exists?

Oh wow. She needs to pay tax. What about the rest of us who put our money through our businesses or employment honestly and pay tax? She is stealing from every one of us, getting for free what the rest of us pay for. Why aren't you reporting her?

I would pay tax yes, because you never know what's going to happen if you don't do things by the book.

For example a friend of mine worked cash in hand for YEARS. Cue Covid, no furlough, as she's not 'on the books'. She has struggled an incredible amount, and I know none of us could have predicted this, but I do like my finances to be in order.

I do pay; I just close my eyes and try not to think about the eye-watering ways that billions is wasted every year by the boys in Whitehall.

I would pay tax but I would like to redesign the rules as I don't think that all of them are particularly fair at the moment.

www.gov.uk/report-an-unregistered-trader-or-business

She’s not concerned about being caught, as I say it would be pretty impossible. Her real name/bank details are never used and she works away from the area she lives in.

Interesting that pretty much every has said they would, that’s how I feel. She usually is a lovely, caring person so I’m a bit shocked about it. Not sure it’s worth ditching a long friendship over but certainly seeing her in a different light.