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AIBU?

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to consider reporting tax fraud

39 replies

itsnotfairisit · 14/10/2025 07:22

A neighbour has boasted to us that he prefers cash and offers incentives for customers to pay cash for his goods and services (he juggles several businesses). Additionally he says he pays cash to casual workers. The cockiness astounds me, and I wonder what would happen if his activities were reported. He seems so open about it!
I know there are bigger problems out there but for some reason this really bugs me.
I should add, that decades ago someone reported my parents for tax fraud. A thorough investigation nearly broke them, but proved them innocent. It was a malicious report. If I reported the neighbour it wouldn't be malicious, simply reporting what he told me (and others).

OP posts:
Bagsintheboot · 14/10/2025 14:24

BadgernTheGarden · 14/10/2025 13:52

As long has he has books that show the cash payments to his business, including VAT if required and his wage bill, and his workers have proper pay slips with tax and NI deducted, he has no need to fear being checked out by HMRC. But there is really only one reason for running a cash business these days, or for working cash in hand, which is why you are now often asked where the money came from if you open savings or investment accounts.

Not at all. There are numerous small businesses and sole traders who don't take card payments because the fees are too expensive, for example. You must have been in a shop at one point or another where there's been a sign which says "please pay in cash if you can". There have even been publicity stunts like certain pubs going cash only to try to keep the use of cash going.

As for cash in hand payments to casual employees - again, very common. I do the accounts for no fewer than five businesses (stables, shoots) where the casual day-staff are paid by cash and the permanent staff paid via BACS. The cash payees get taxed and get payslips just the same.

itsnotfairisit · 15/10/2025 07:51

@Bagsintheboot I understand that. But do those sole traders brag about giving deals for cash because the payment can go under the table?

I am starting understand another facet of MN wisdom which seems to say keep your beak out and allow tax dodging

Generally not so for benefits fraud, but hey. Although I'd say that in many cases the two could be linked

I shan't report. But I am astonished at how many people have persuaded me not to. No wonder we're in a mess. And now I feel complicit too

OP posts:
RoseAlone · 15/10/2025 07:59

What a rotten thing to even think about doing. Why would you cause trouble for someone just for the sake of it? You seem like a nasty like a nasty piece of work

everyoldsock · 15/10/2025 08:01

It’s your business and everyone else’s business. Tax dodgers are scum. I wouldn’t hesitate to report and would probably enjoy doing so.

Are you or his employees on his radar at all? Just wondering why you suspect it could be dangerous?

XWKD · 15/10/2025 08:01

You have no evidence.

CryMyEyesViolet · 15/10/2025 08:09

mutinyonthetwix · 14/10/2025 07:31

HMRC annually estimates that it loses more revenue from tax evasion by sole traders and small businesses than from big businesses and all individuals combined. In some years, small business and sole trader account for an estimated 80% of all lost revenue. This sort of thing really adds up.

This. The ultra rich on the whole aren’t the tax dodgers. It’s people like OP’s neighbour. I absolutely would report, it might come to nothing, he might not be doing anything wrong but at least I could skew at night knowing I was a good citizen doing my part

HelpMeGetThrough · 15/10/2025 08:23

I’ll happily pay in cash, I do for almost everything. What the recipient does as far as their tax is concerned, isn’t my problem.

Cleikumstovies · 15/10/2025 08:29

You are complicit if you have suspicions and do nothing.
He may be happy with cash - that's not this issue. The issue is defrauding the country.
It's the same with benefit fraud. On an individual basis not a huge amount, but added up it's the cost of health services, schools, a better quality of life for the vulnerable, etc.

If you had suspicions about a child being abused would you sweep it under the carpet? Of domestic violence - yes, keep your beak out, she loves it really.

SapphOhNo · 15/10/2025 08:35

Dodging tax is everyone's problem. Report for sure.

We'd be up in arms if he was cooking the books to minimise CMS payments.

ForNoisyCat · 15/10/2025 08:36

XWKD · 15/10/2025 08:01

You have no evidence.

i don’t think you need evidence. You report suspicion and let the investigators do the rest.

ForNoisyCat · 15/10/2025 08:39

itsnotfairisit · 15/10/2025 07:51

@Bagsintheboot I understand that. But do those sole traders brag about giving deals for cash because the payment can go under the table?

I am starting understand another facet of MN wisdom which seems to say keep your beak out and allow tax dodging

Generally not so for benefits fraud, but hey. Although I'd say that in many cases the two could be linked

I shan't report. But I am astonished at how many people have persuaded me not to. No wonder we're in a mess. And now I feel complicit too

You can report anonymously and Gov website advises you don’t tell anybody:
https://www.gov.uk/report-tax-fraud

Report tax fraud or avoidance to HMRC

Report tax fraud by a person or business to HMRC - tax evasion, VAT fraud, false, Child Benefit or tax credit fraud.

https://www.gov.uk/report-tax-fraud

CitizenZ · 15/10/2025 10:25

I absolutely would report it. Almost 6 Billion is lost in the UK each year due to Tax evasion from small businesses. That's a lot of money that could go towards our services. These people have no problem using our NHS or sending their kids to school, but don't want to pay for it.

ShesTheAlbatross · 15/10/2025 10:27

RoseAlone · 15/10/2025 07:59

What a rotten thing to even think about doing. Why would you cause trouble for someone just for the sake of it? You seem like a nasty like a nasty piece of work

I think tax dodgers are nasty pieces of work

Bagsintheboot · 15/10/2025 10:40

itsnotfairisit · 15/10/2025 07:51

@Bagsintheboot I understand that. But do those sole traders brag about giving deals for cash because the payment can go under the table?

I am starting understand another facet of MN wisdom which seems to say keep your beak out and allow tax dodging

Generally not so for benefits fraud, but hey. Although I'd say that in many cases the two could be linked

I shan't report. But I am astonished at how many people have persuaded me not to. No wonder we're in a mess. And now I feel complicit too

Did he actually say he prefers cash "so it can go under the table"? Because that's not what your OP says and if so then that sounds more like an admission to tax evasion.

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