To report someone for tax evasion

[WhatsHoppening]

An acquaintance doing medical aesthetics and making a bomb but not officially registered as a business and paying no tax despite advertising on social media and posting lots of clients.

This has been going on 3+ Years so not a new act of desperation.

How do you know they aren’t paying tax?

YANBU - people and companies who dodge tax are robbing all the rest of us. There is a facility to do it online via HMRC.

Tbh, It doesn't really matter whether the OP knows for certain that they are or not.

If she reports suspicions and HMRC check and see that tax is being paid, no action will be taken. They will have access to full records to be able to check.

Nobody gets prosecuted for tax evasion just on someone's say so.

That doesn't realy matter, if she is then there won't be anything to investigate so no harm done

Personally I rather they had extra false reports than not enough real ones. Tax evasions costs us all money

Yes, I agree with this.

Well you can register as a sole trader and not be on Companies House or anything like that, if that's what you're basing the 'not registered as a business' thing on. But if you want to report them then no reason not to. HMRC will easily be able to verify if someone is doing their tax returns.

I’d be reporting them for being unregistered and therefore presumably unlicensed: if they aren’t working from a CQC-assessed facility then they need to register as a business and apply for a license. They can’t just call themselves a medical aesthetician and stick needles into people’s faces from their spare bedroom.

If they're not registered for VAT they will also be taking business from legitimate VAT registered businesses offering the same service, as they'll be able to undercut prices by 20%.

The impact on wider society of this type of stuff is not insignificant.

(And by register as a business, that could include being registered as a sole trader.)

I’d be concerned about their insurance - if they even bother having it - its invalid if not registered properly.

I’d actually be more worried about medical negligence.

if they aren’t a registered business do they have the relevant professional insurances and indemnities?

imo any medical or anyone doing any medical procedures should have every box ticked.

i’d report before they cause someone some real medical consequences.

Anyone doing medical procedures would be very unwise to operate as a sole trader - most such businesses operate through a limited company precisely because of the limited liability protection.

Anyone doing medical procedures would be very unwise to operate as a sole trader - most such businesses operate through a limited company precisely because of the limited liability protection.

Report away. If it's all legit, nothing will come of it.

A business does not have to register for vat until their turnover reaches £85,000 in one tax year. My business is not registered, nor am I registered with companies house because I'm a sole trader not a ltd company

How would you know if they pay taxes? I run 2 small businesses, and pay tax for both, but im not sure how anyone would know?

This. And also they generally won't be able to undercut by 20% as they won't be able to claim back the VAT they paid for VAT-able goods and services they buy for their business

They have told me and others they don’t pay tax (inasmuch as complaining they weren’t approved to rent a home because on paper they only earn significantly less than they do as their extra earnings are cash in hand and not recognised).

I'd report them. Let HMRC do the rest.

In a flash. Despicable behaviour.

I think I will report anonymously. I worry about the impact on the individual as I’m worried they will get a hefty tax bill/fine and also whether this would impact on their career as a nurse. However, it’s immoral. You have to pay tax!

I'd stay out of it. Hopefully they will be caught one day but I can't be arsed with drama or worrying about the consequences of my actions.

Also, there is a fine line between tax evasion and tax avoidance. The latter is totally legal and the reason why the wealthy do not fuck off with all their money to live and spend it in tax havens.

Are they a registered health professional?

They could be in trouble with their regulator if so, not just HMRC.

Not to mention their liabilities if something were no go wrong. An HCP would be insane not to have insurance and is required to have indemnity cover.

You can report anonymously, but they may be told the reason for any investigation I.e. someone has reported you for tax avoidance. Could they then put two and two together and suspect you perhaps? Perhaps consider this before going ahead