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.

It’s strange that she should openly speak about it to you, unless of course she’s labouring under the belief that you’re not an acquaintance, but a friend. I think that’s where the distaste comes in, or at least it does for me. I don’t care if you report her or not, but at least have the courage of your convictions and don’t smile in her face while judging her behind her back. I have in fact reported someone before (not tax, but similar) to an authority, but I also told them my opinion to their face, and didn’t pretend that I was a friend.

I would think it more likely that she is registered as a sole trader, and that she doesn’t pay tax because she’s declaring under the limit on her earnings. I also imagine that she’s not putting the money in a bank account. While her instagram is showing her work she can claim to be doing it for free for friends/in exchange for them allowing her to use their image for promotion (which isn’t unusual). Of course she may be stupid enough to not cover her back, but I doubt it tbh.

They may or may not investigate her, and if they do it may not be more than a cursory glance. Just don’t expect a big ‘gotcha’ moment for her OP, because you could very easily end up disappointed.

YANBU

This in spades.

Amazon pay what is due. If companies that size try it on, HMRC will challenge it and take it as far as is needed legally.

The likes of Amazon can't just pre pack and carry on in company after company.

We should be far less tolerant of the individuals and small companies which don't pay at all, let alone this mythical "fair share" soundbite.

Sole traders do not appear on any public register

Mind your own business. Nothing to do with you.

It is the OP’s business! It’s everyone’s business!

I agree @daisypond especially if someone tells you and not in confidence!

Yes you should report. Bit too late I think to have said when they started out to make sure that they paid taxes, with some reason such as a disgruntled customer could report them.

How? It's not as if your tax bill is higher because someone is evading their's.

How? It's not as if your tax bill is higher because someone is evading their's

it is, indirectly. The more people evade tax the higher tax and ni will be as the money for nhs and other services has to come from somewhere.

like when there was a trend for claiming whiplash in minor road accidents- everyone’s insurance went up.

Taxation doesn't work that way. Government takes as much as they can get away with, and no individual behaviour affects the overall tax policy.

If everyone behaved that way, they would start clamping down more. But tax rates aren't worked out like one would a personal budget.

On an individual level, the government won't put tax up because Joe Bloggs had evaded £10k.

But on a population level, the tax gap (which is measured in billions) overall does mean less money available for public services and therefore a higher burden on everybody else in the population.

www.gov.uk/government/statistics/measuring-tax-gaps/measuring-tax-gaps-2021-edition-tax-gap-estimates-for-2019-to-2020#:~:text=The%20tax%20gap%20is%20the,and%20what%20is%20actually%20paid.

So you agree it doesn't actually matter to you and me whether our neighbour pays their taxes. Tax evasion is a moral failing on behalf of the offender. But it doesn't really affect anyone else, hence my harsh judgement of the OP for being a nasty snitch.

@HeadOnShoulders she’s saying the opposite. That the vast numbers of people avoiding tax adds up to billions of pounds and therefore cracking down is good not bad.
Its the same principle as recycling. Why bother recycling one bottle? It’s a drop in the ocean of climate changed. But if over time every tax avoider was tackled and paid the tax owed it would mount up to a significant amount.

But it still wouldn't make a difference to you or me, so why are you snitching on someone else?

I agree with you, OP. 100%. If we were all trying it on like this there would be no money for everyone who really needs it. Christ, there's not enough now.

Because cumulatively it does make a difference to you or me. Whether that's in terms of level of tax we have to pay or level of public services we receive, it does.

But it does make a difference. Of course it does. It either means taxes go up or services go down. If you can’t get a GP appointment or your hospital stops your cancer treatment or or your children’s school doesn’t have enough books or your library has closed down or your roads have potholes or there are no carers for your elderly mum -all of this and more. If every year the Chancellor puts up taxes on petrol and alcohol or puts up VAT on anything you buy, if personal allowances worsen so you take home less pay, if stamp duty goes up on a house you buy, etc - all of this and more. Everyone else has to pay more tax and everyone, including you, has worse services

I'm trying to understand how if we all live in the same society it's NOT our business. Lots of judgy talk about snitching and getting 'involved'. Getting involved is what you do if you want to change things or engage. At all kinds of levels from voting to reporting crimes to campaigning for social change. It's what the elements of a society do.

Nasty spiteful woman you are. You should be ashamed

So all them saying the op is wrong would they also agree that people mostly men are ok to cook the books to pay low or no child support then ?

because that is what happens when people dont declare their true earnings and the resident parent/child loses out

No I absolutely would not.

Exactly- I highly doubt they'd be saying then "mind your own business, he can pay no child support if thats his choice, dont be a snitch!"

that is a good comparison.

Often landlords do not accept self-employed earnings, mortgage lenders usually do not either

Of course they do, with 3 years of SA302s.

Probably what will happen is the individual will be contacted by HMRC and she will claim to be declaring all cash income already, and that it's malicious. However if she's not registered for SA and they can find undeclared income in her accounts then they will fine her. She will also most likely be struck off the NMC register.

She would however be able to continue offering fillers and botox as there is currently no statutory regulation of this field whatsoever.