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!

The relative is probably the financial controller or office administrator.

You clearly don't want to answer the question.

Probably cause they're all at it.

gosh, this is the classic example why you never tell anyone what you are up to. jealous ppl like the op stick their nose in and fuck it up.

It could be corporate fraud but it could just be unethical. It is extremely common.

What is likely happening is that the contractor does free stuff for the property director of a company in order to be awarded the corporate contract.

I’ve seen this happen time and time again. I’ve never met a property director that doesn’t have a perfect, fully extended house!

She’s very lucky and you are obviously rather envious, but it’s not fraud!!

Yes good point. If you are planning to steal / commit fraud I agree probably best to keep quiet about it.

I read it as the family member gets their employees to do the work, pays them but doesn't charge the friend. I'm no expert but I would say it was quite legitimate. A friend of mine volunteers at a local animal rescue and a local building company does free work for them. For small jobs some of their workers give their time free as well.
I think you should probably keep your sticky beak well out of it 😬

Too right. Last time I tried to rob a bank, I chatted about the plan in the pub with a few friends, one of them had the audacity to inform the police, and we got arrested. We should all just let everyone get on which any crime they like, like in "The Purge".

do i stay out of it or say something (who do i even report to!!)

A more pertinent question than “Who?” is “Why?”. Why make this your business?

Not unusual. Quite often happens when the business owner is distracted by a crisis such as a serious illness and leaves a trusted employee to oversee finances.

I own a company, I do quite a bit of Botox (not cosmetic) that I don’t charge for when people are really in need, including for one of my employees.

never thought people would assume I was cooking the books. The product is paid for by the company, but I don’t invoice. I’ve spoken with hmrc about it, there are no issues.

The level of acceptable of low level tax crime makes my blood boil, just like the level of benefit fraud. I posted on a recent benefit thread that people who commit tax evasion tend not to post about it, but clearly I was wrong - they are all here!

all you numpties quoting me, carry on. no crime or fraud is being committed here and you are just twisting what i meant, but you go off if it makes you feel better. op, jealousy is a very ugly trait.

DH (a mechanic) doesn't charge me for labour when he fixes my car - is that fraud? To be fair, he doesn't charge me for parts either as I'd start charging him for dinner/cleaning the ensuite/other wifely "duties" and we'd soon see who owed who more. He does, however, put those parts through his business account. Also not fraud.

It is tax evasion. It should bother people because it screws us all over - paying tax benefits society, illegally not paying tax only benefits the person doing the evading.

You need to get yourself a new hobby...

What she does is none of your business and you should not be describing yourself as her "friend".

I fail to see what "fraud" this lady is committing either.

Not the same, because invoices aren’t being raised.

I thought OP said relative worked for company B, not company A (the one being invoiced).

If so, I question how the OP knows that company A is not being invoiced in line with the price agreed with company A for the work they have commissioned company B to do, and why if they are receiving invoices for other work that isn’t approved via purchase orders they have not noticed and would have approved payments for these fraudulent invoices.

It all sounds bizarre in terms of a) how the OP would know this if she does not work at company A; and b) because it wouldn’t be possible for this to happen if company A has the most basic level of appropriate financial controls in place, unless OP is saying there is a conspiracy to defraud and embezzle money from company A involving finance staff at both companies.

What do you think is being cooked? It would only be fraud if she’s paying cash and they aren’t claiming income. It’s not illegal to not charge for a service. What’s the problem exactly?
that they’re paying out of pocket? That’s their problem and their loss.

That is fraud as your personal car expenses are clearly not a business expense. I'm sure this sort of low level tax evasion happens all over. What @doitellthem has described is much worse.

Thank you for trying to explain, and I get the friend potentially receiving, but I have another but - in that scenario surely Co A would know that the goods or services they are paying for have not been received by them?

I think I’ve decided it’s giving me a headache trying to work it out and I best not apply for the 1% tv show.

Personally, I would not even know if my friend was getting something for nothing, and unless somebody was in danger and it’s a matter of safeguarding, it is none of my business. I am now thinking of my lovely garden shed which was a freebie in a tit for tat scratch my back exchange of skills. Should I be sitting on the naughty step?

What makes you think they don’t know? And why are you so concerned?

For all we know, company A may have full knowledge of the work being done for a relative of their employee and it is not fraud if declared correctly. It is unwise to throw around accusations of fraud and embezzlement without any care or more importantly, EVIDENCE. OP's use of the phrase "business is having their books cooked" is pure hysteria.
I think the thread is totally motivated by jealousy and OP doesn't sound like much of a friend to the lucky recipient of these favours.

For what it’s worth, there are tax advantages to putting it through the business. It isn’t fraud just basic tax minimisation through legal avenues. I’ve done the same with family events to save on VAT.