to be considering reporting someone for tax avoidance

[chloesbaby]

A friend of a friend, who I have known for years but have never become close to, has been self employed for about 15 years since having kids.
She is a private tutor. I have recently found out from my friend that she has NEVER registered as self employed and doesn't pay tax.
She earns about 30K, her kids go to private school and they have a really nice lifestyle (she shops at Jigsaw, Jaeger, etc).
I am absolutely fuming, esp as I am also self employed and would never consider doing something like this.
What would you do?

Sorry minipie, I had read the whole thread but somehow missed that the suggestion came from you. In that case we're agreed.

I have more sympathy for benefit fraud too in general, but I admit that the one night where we were camping and I was kept awake till the small hours by a group next door going into loud and extensive detail about the myriad ways they deceived the welfare system tempted me more than ever before to do something about it.

But I didn't. Because it was none of my damn business.

I know someone who is doing this. I have been told in detail by the person the state of their finances. They are avoiding paying tax, they say that their employees are working less hours than they do and then top up their wages cash in hand. They treat their business as if the whole amount brought in is disposable income to themselves. My friend tells me how her DH hides money in their house to keep it out of the books.

They SPEND big time.

She also claims tax credits and gets around 400 pound per month.

TBH it really fecks me off but I can't bring myself to report them.

However, we were very good friends until she told me about this and now I can barely look at her. She constantly talks about what she has spent, what she will be doing, where they are going on holiday. It rankles because she thinks of herself as superior to other people around here who are claiming to be single but have DP living with them.

If DP didn't have to pay tax every month we would be SO much better off grrr

Sorry for ranting but it annoys me so much!

BuckBuck - why don't you say something to her?

Along the lines of ... "Don't you feel guilty when everyone else is paying tax" or something like that.

Blauer - we're not quite agreed!

I think benefit fraud and tax evasion is unforgiveable, the rules are set up with the intention that money is distributed to those who need it most*, so people who bend the rules are taking money from those who need it more.

But I think everyone should be given the chance to do the right thing before they are shopped - and I also think if you're willing to say something behind someone's back you should be willing to say it to their face (except in Mafia type situations obv )

• hence I agreed with you about saying something to the cheat directly before shopping them.

*I do recognise that there are many flaws in the rules, but the intention at least is right.

Well my dad came back from abroad with all of us in 1981 and he works for a company abroad (gets paid in foreign currency) and he has NEVER registered for tax.
I think you are only liable for the last 6 yrs, but he earns less than £20,000 a year anyway.

Sha always says it in the context that she wants him to sort it out and he refuses to but that doesn't stop her from spending it.

And I'm a bit if a wuss when it comes to confrontation too. And I know her response would be I'm jealous. I'm not, annoyed by it yes, but jealous, definitely not. I'd be a nervous wreck thinking that HRMC would be knocking on my door!

I'll stop hijacking now.

C'mon BuckBuck, grow a pair and challenge her on it! If the friendship is spoiled anyway then why do you care what she thinks.

(must admit I'd be a wuss too I think )

minipie

Scaryteacher you are by law required to complete a tax return if you earn income from property. You must complete the self asesssment even if you are not in profit. If you also pay paye you could reduce your tax liabilty.

Tax evasion is theft. You should report her. We all have to pay tax if we earn a certain amount and it's due to people avoiding paying tax that we're all facing having our child benefit cut/scrapped and losing our tax credits.

Every worker has a duty to pay tax and support this country thus making things fair for everyone.

I hate tax evaders and would report someone without a second thought.

I think this is where morality rules blur a bit. To do the right hting by all the tax payers you should report it. But messing about with someone else's life that that doesnt make for good karma.

I think you should sit out and let karma take its course TBH.

What shes doing is very wrong but its not for you to judge I dont beleive.

These 'friends' are unbelievably stupid to go around boasting about it if they really are evading tax. Are you sure they aren't just trying to make their lives appear more exciting than they really are?

If you are fairly sure of your facts then I would report them. It is theft if it is really going on.

Lynli - you can't reduce your PAYE liability with rental losses unless you've got very-very-very specific circumstances (where you're renting an entire block of flats, for example).

YABVVVU, and you're a dirty grass.

The government spends our taxes (and we pay them every time we shop, buy a house, cash in an investment, earn interest in a bank account, when we die) on non-awesome things like huge American wars against made-up enemies, ludicrous quangos, armies of barely-competent civil servants, and an unending array of advertisements telling us what to eat, how to live, what crimes not to commit, how to drive, hot to cross the road, not to get shitface drunk in the street and assault people.

I don't want to pay for all that bullshit, so I avoid all the tax I can. See if you can find out who I am and then snitch on me you jobsworthy little green-eyed monster.

Snobear - avoid or evade? Big difference.

And why the hell should the rest of us have to make up the gap in public finances caused by you ducking out? So you don't like everything the government spends money on. Big deal. If you are that bothered, try standing for parliament.

There are more than 60m people in this country and I bet we could all find examples of things we don't like. Most of us do have to pay up though, or there would be no roads/rubbish collections/schools/hospitals/police etc. etc. etc.

Hope you aren't planning on dialling 999 if you ever get into trouble, btw.

Snobear - that's how a democracy works. No-one's ever going to agree with all the government does. But if everyone "avoided all the tax they could" there'd be no money for the really important things. Instead people who do pay the tax they're supposed to have to pay extra.

why dont you leave her alone?

Get on with your own life and stop being bitter.

Still a grass.

You need some cold hard facts before you make this decision.

Her lifestyle might well be based on her husband's earnings. Impossible for anyone earning only £30k to put two or more children through private schools. She might in fact be earning not very much at all.

That's true what poppy34 says but although you've been told from a friend you may not know the full story.
What if this friend was mistaken or twisted the story a little? I know a lot of people that claim they earn big bucks but are really relying on their many credit cards to buy their luxuries!!!
I'm a firm believer in karma - what goes around comes around, so if you do snitch just remember that some day that might come back to haunt you!
At the same time, if this lady really is avoiding paying her taxes and living a lavish lifestyle from it, you don't have to do anything because it'll come out eventually - always does......look at the govt's claimed expenses as an example - if that's relevant but I'm sure you catch my drift?

Haven't read the whole thread, but yes I would. It is social responsibility to do our bit and pay taxes and evading them is theft, just like benefit cheats IMO

YANBU. It's different from reporting 'suspected' benefits fraud becaue HMRC are very rational (and too busy to overreact to claims of small fraud). They'll deal with your complaint in a civilised fashion. If your friend is out of order, she'll be offered payment options.

The difference is VERY important imo, since some busybody reported me for cheating on my benefits (I wasn't). My housing benefit was suspended for 3 months pending investigation. As a result I was evicted and became homeless.

Unlike the DWP and local councils, the Inland Revenue does not wreck lives in the name of beauracracy.

• bureaucracy (sp)

Sorry to hear that, Isgrace, hope things are better now. Something similar happened to my sister. Spiteful false accusation at a time when she was very vulnerable (had to leave her nursing degree due to an unexpected pregnancy). Horrible. My sister later finished her course and she had her dd are fine now but no ruddy thanks to the lying bitch who made the complaint.

That's why I'd hesitate to report anyone for benefits. Tax feels different as you won't be left without the means to feed or house your children while you are investigated.