To think this is fraud and do I say something or stay out of it?

[doitellthem]

I have NC'd for this. A friend of mine NEVER has to pay for work on her house...she has a family member who is high up in a business and so all of the work is put through the business. She says they are doing the jobs as favours! surely this is fraud! do i stay out of it or say something (who do i even report to!!)She currentky has a landscper in doing the garden...just so happens to be the landscaper who does the work for said business!

@Burntatbothends This is obviously also illegal under the bribery act

It’s not bribery though. No one is forcing anyone. There’s a choice. If someone doesn’t want that as part of doing business they are free to say no, and take up other work elsewhere. Maybe it’s not an attractive proposition for anyone, in which case no one will agree. It’s obviously an attractive enough proposition if people are agreeing.

If you are sure about this then you can write anonymously to the financial controller of Company A, with as much evidence as you can muster.

The problem is that you will need to consider the possibility that you will come under suspicion. The financial controller will go along to accounts and ask who placed the order for landscaping (and previous work) at 32 Acacia Road. Word will get to the relative of the householder within Company A, who will probably work out that they were dobbed in by a neighbour, unless you can persuade the FC to portray it as a random spot check — but that would probably require them to pull "every order from week 29" and that would be a lot of work.

So you have a dilemma, trading off your concern for the right thing being done (assuming you are confident in your facts) versus the fact that nobody likes a snitch.

A 'friend', you say.. Jesus, I hope I'll never meet 'friends' like you.

YABU it’s not fraud it’s only the same as a company doing something free for charity. You need to take your nose out of your “friends” business and keep it in your own. Jealousy doesn’t look good on you.

It theft by a person in a special relationship and more serious than normal theft here in New Zealand. Not sure about UK but sure it would be similar. If the firm was trying to recoup tools they had themselves lent employee that would be a civil matter.

Are you saying that Company A is paying for work to be done that they don't know about, and that the relative who works there is authorising the payments to Company B? If so, then it is the relative who works at Company A who is committing the fraud.

Is it a Limited Company?

My word people, let me clear this up for you.

If a company puts through their books personal expenses but classes them as a business expense - that is fraud.

OP you need to find out whether this is happening. If it is, yes it is very much fraud by reducing their corporation tax bill, reclaiming VAT (if this is applicable) and potentially not reporting or paying any benefit in kind tax!

The OP doesn't need any evidence. Just inform the companies directors. They have full access to the info to investigate if they want to. Either they will take action if this is allowed and not take action if it is.

No. Theft is theft but the offence of theft applies only to things, not services. It is not theft. It may be fraud but that is fraud by the employee. Companies do not like suing their employees for fraud because (1) it’s bad external PR, (2) it’s bad for internal morale and (3) the legal costs are high and usually the culprit is not going to be good for the money so a judgment would not be enforced (or not in full) and they wouldn’t recover their legal costs. I’ve investigated dozens of these cases and only once in 15 years has the company wanted to pursue it - and then abandoned the claim because the defendant became suicidal.

Fraud can be both a civil and criminal offence. The burden of proof is higher for a criminal prosecution than a civil claim. Unless the OP’s friend lives in a very large property, the cost of landscaping will not be anywhere near high enough to merit the litigation risk (mainly in failing to recover costs from an impecunious defendant) in pursuing a civil claim. The one time I had a client want to do this, the sum involved was £600k. You’d have to be really going some with landscaping to be in 6 figures.

The police are unlikely to be interested in recommending a prosecution for a low value fraud.

Not my circus not my monkey. However, If this was a politician or off shore billionaire I wonder if it would change opinions? People pick and choose when tax evasion is fair or not. The cash in hand builder/ cleaner meh. The millionaire using legal loopholes holes? Scum. Morals are morals.

Using “legal loopholes” is tax avoidance, not tax evasion. And the ability to use those “loopholes” applies equally to you, me, and Jeff Bezos. Tax evasion is unlawful, tax avoidance isn’t.

As a fairly pedestrian example, if I have an income of between £100k-£120k and also have a couple of pre school kids, I can avoid a punitive tax rate by putting more of my income into my pension so as to keep my taxable income below £100k, and retain my free childcare hours. That’s legal, and many people do it. There is nothing wrong with optimising your personal tax position within the bounds of the law.

Ah ok. The person I knew worked for a charity so it may be different. The trustees were legally required to report to police and charity commission and to conduct an internal investigation.

The police did prosecute and he was convicted even though the amount was around £3000 I think.