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.

I have done the report- it’s a fairly brief online form. You give as much information as you know about the person and the business including contact details etc and then leave it with them. It specifically says don’t go hunting for details and don’t tell the person- leave it to the HMRC. I don’t get the impression I will hear anything else which is absolutely fine with me. I’m not going to be sat waiting for updates with glee. If they decide to do nothing else that is fine with me.

As much as I agree that tax evasion is bad, I find it hilarious that OP and others would most likely still shop in places with huge tax avoidance schemes. May not be illegal but definitely immoral. If I cared this much about a small fry “friend”, then I’d definitely boycott 99% of shops and supermarkets in the UK

Where on the Gov website can you find this? I don't think it is possible. I am a sole trader and I don't think anyone can check whether my business is registered anywhere as I don't have a VAT registration.

There is a huge difference between legal avoidance and tax fraud. I cannot agree with your comment at all. Most of the 'tax avoidance schemes' you are talking about are actually government incentives to attract business to this country. It is much better that the UK gets a portion of the tax revenue rather than none at all. I am old enough to remember the 'brain drain' that happened under the labour government many years ago. We definitely do not want all our higher rate tax payers and lucrative businesses to move abroad.

I’d have done the same as you OP. If she’s willing to be fraudulent about tax, what other rules is she being lax about? Bit of stretching the truth in her documentation at work? Reusing single use kit to minimise her costs?

Thank you for being a bastion of morality and an example to us all.

But seriously, you should try to find better ways to make yourself happy. Grassing up this poor nurse is not comfort food for your soul.

@Octomore you don't have to register for VAT if you're trading below the VAT threshhold

I'd report to NMC as well tbh. If she's doing things properly neither of your reports would cause her any difficulty.

If you are so convinced about the morally right thing to do, do it - but under your name.

I don’t really know about the NMC etc enough to report without feeling like I’m going over the top. I sort of feel if HMRC ok her I’d hope she would have made provisions for safe nursing care. I’m sure there are a lot of nurses doing aesthetics slightly off the books which is concerning.

Absolutely I used my contact details. It’s still kept confidential I think but I am more than happy for them to call me if needed.

As far as I’m aware, and my info may be outdated, the majority of aestheticians are sole traders, so not being on company house doesn’t necessarily mean anything. Equally, not declaring the extent of her earnings doesn’t mean she’s not registered.

it’s of course up to you whether to report her or not, but if you do I wouldn’t expect to see much, if anything, in the way of results.

"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)."

@WhatsHoppening are you absolutely sure that they weren't saying that they have a low salary because the remainder of the profits are either retained in the company OR paid to her in dividends? Because both of these reasons could legitimately explain why she might be making lots of money but have a low salary on paper.

You may be right but like others I'm surprised that a medical business would take the risk of being black market. Maybe I'm naive.

My sister was investigated due to a similar situation, I've no doubt. It cost her a huge amount in accountancy support and there was ultimately no case to answer. A lot of stress and expense. OP is quite vague about the details. Often landlords do not accept self-employed earnings, mortgage lenders usually do not either. If at all in doubt I would not report, a tax investigation is a massive deal in terms of time, stress and accountancy fees and if the business is already marginal, this will probably kill it.

^same. It’s not like she’s providing an illegal service, or just doing the odd bit here and there for a couple of friends. It’s easy to register yourself as a sole trader too.

Maybe she is that stupid, but I imagine it’s more likely that she is registered as a sole trader, and she takes cash in hand as much as possible so she can avoid declaring her true earnings.

Ultimately if everything is above board no harm done. And if it is tax evasion then given that the amounts will likely be small if they do actually take any action it will hopefully just be to get them to sort out their tax.
I don’t think it’s helpful as a society to constantly turn a blind eye to illegal behaviour and just label it ‘none of our business’ as ultimately it allows it to continue and in some circles it’s almost a given that business is cash in hand to avoid tax. Most of us would love to be paid 20% more pcm but that’s what life is.

With regard to the NMC I personally would have concerns about her model of practice.

Most responsible Aesthetic Practitioners are part of a group cover scheme, especially if they do fillers. That way if a problem occurs following treatment another practitioner can assess the client and advise/treat as necessary.

A Lone Ranger who doesn't pay tax is unlikely to have that level of cover...

The OP is exactly why I never tell anyone my business and encourage others not to talk too much about themselves and their lives. People can be such witches. Can you imagine how evil an enemy would have to be to compete with the OP who's ostensibly a mere 'acquaintance'. How vengeful.

Things like this is why you can never truly trust people you call friends and family. On the surface they seem to support you and want the best for you but deep down inside they're just seething at your success and good health. I hope whatever downfall that may happen to the person returns to the OP ten-fold, over 10 years.

I would hope that a friend or family operating a medical aesthetics practice which involves medical/cosmetic procedures would be doing everything legally and above board- have you not seen the result of botched fillers/botox etc? If she hasnt declared her business, does she even have insurance or public liability?- if not, this means her clients health are at risk but you seem very blase about that aspect 🙄

What a sad thread. You literally know nothing. She could have had difficulty getting a mortgage because she's self employed and it's tricky getting a mortgage when self employed. And btw I do pay taxes but I do think you should mind your own business. The chances are they are completely innocent and now you're just causing unnecessary stress for them

But I don’t understand this.

If something ‘terrible’ happens that you’d want to befall me 10 x over then surely that’s because they are acting illegally. Does that just not bother you? Anyone should be able to set up businesses and avoid tax just because? I’m not a busybody quizzing any and everyone on every aspect of their life and trying to drop them in it left right and centre. This is a specific person who has basically told me that they are avoiding tax which is illegal. That’s different to my friend chatting to me about a new Etsy venture.

If anything negative came of it that would be because THEY are acting illegally. The bad person is not me for whistleblowing.

Did you read the thread? she TOLD the OP she doesnt pay tax and is operating under the table as it were

I really understand that concern but I honestly have no idea if she has indemnity etc and wouldn’t like to assume she didn’t

Things like this really irk me. These are the same sort of people who'd personally call / tweet / e-mail Priti Patel to tell them they're suspicious of their neighbours citizenship status. These are people who who'd tell the boss that Sarah arrived at work at 9:03 and left at 4:56 thus should be disciplined if not fired. Really the worst type of people because they genuinely believe they are "doing what's best".