Should I shop 'em?

cford_2

We have some friends - quite close friends to be fair - who have their own business... He does 95% of it, but she has a good income on her own...

However, his business is really taking off - can't say too much about it - but it's been going for about 3 - 4 years, and now is making some serious money...

We invited them round for a dinner party a couple of weeks ago, and it turns out that he hasn't even registered the company for VAT (and he's above the legislative threshold now), neither does the tax man know about his venture...

It doesn't appear the inland revenue will ever know either - if he's gotten away with it so far - how will he ever be found out?

Maybe jealousy is kicking in... Maybe I should just mind my own business... But when I see what I am paying - 10's of thousands each year in income tax - and I see them getting away without paying a penny, I just hate the fact that they can get away with it!!

Maybe it wouldn't be so bad if they weren't so smug about it - they have booked 3 fantastic holiday's next year - they didn't have one at all this year... And the designer clothes have now started as well... Like I say, it sounds like I am getting bitter - but it's more to do with my personal issue of having to PAY tax, rather than anyone not paying at all... if you get my drift...

Wouldn't want to say too much about their business other than it's quite unique, and is in such a market that means that it's difficult for anyone to really know it even exists (i.e. - it's not a shop!)

question is - should I advise the inland revenue of their company??? I am giving it some thought I must admit - just wondered what everyone else thought and whether I am on my own here - or whether I am just a jealous and twisted person without morals...

spidystrider

As you know, this is something you will have to decide for yourself. It is obvious that you are feeling jealous but I don't blame you. They are doing very well but are cheating the system and we the tax payers are footing their bill.
If you do go ahead and inform the inland revenue then you have to think seriously about ending your friendship with them. To grass them up behind their back and be best friends to their face is wrong in my opinion.

Olivia_Jones

Its one of those things that is tempting to do,but you may regret it after you have done it.I agree with spidystrider,that you couldnt possibly remain friends with them after you have grassed,so it all depends on how much you value their friendship.

darich

Why not advise them in a friendly way that the tax man will find out and they'll be in a big trouble?
Obviously not insinuating or suggesting you be the one to tell but there are fraud investigators and eventually they'll do a business deal with someone who knows their situation.
I'd be fairly sure they'll be found out sooner or later and if they've been dishonest they'll be looking at hefty fines and possibly jail.

You could point out the potential/probable problems without telling the tax man and they might see sense.

Pssst

You pay 10s of thousands of pound in income tax each year? you must be making it too..!

Anyway i say good luck to the man. He obviously has the independence of thought and entrepreneurial flair to get his own business off the ground. For the rest of us wage slaves...well you never get rich working for someone else do you?

Your friend though does need to be more guarded as to who he tells his business to.

Leave well alone and congratulate him on his success. If he gets caught,it shouldnt be by your hand. How bittersweet would it feel if you shopped your "friend"? I doubt it would actually feel that good. A bit like Judas receiving 30 pieces of silver.

brewerdave

I'd shop them without a second thought - we are ALL likely to suffer tax increases next year as the Government scrabbles desperately for cash - I'm a pensioner paying tax on my relatively meagre pension - why should anyone get away with it?
Pssst - following your logic - good luck to the mugger/burglar/bank robber too!!

m_13

Unless their business is wholly with other individuals (ie no other companies) then they might remain under the radar for longer but if other companies start putting transactions through their books with them that's when eyebrows are raised. If one of those companies are audited and their invoices noticed (particularly if one company has a large number of transactions with them) then they will be spotted

You are in a difficult situation particularly if you don't want them to know it was you who reported them and they then cry on your shoulder.

Personally I'd tell them that they are risking everything by breaking the law, particularly their own business. Say that not everybody is as charitable as you and if somebody reports them for suddenly flashing the cash then the authorities are going to investigate them. It can't only be you that's spotted their new found wealth!

Pennywise

They're probably talking out of their bums anyway! Dinner parties are no different to "pub talk" where people are always boasting about not paying tax etc but the reality is completely different. Some people can't help themselves from lying. My own brother does it all the time. You'll have to take what they say with a pinch of salt.

If you really think they are evading tax, then you should report them. I would and I have done in the past.

You can easily report them to HMRC - use their tax evasion report form from their website:-

https://online.hmrc.gov.uk/shortforms/form/TEH_IRF?dept-name=TEH&sub-dept-name=&location=39&origin=http://www.hmrc.gov.uk

You can also phone or write - http://www.hmrc.gov.uk/tax-evasion/index.htm

Either way they'll ask for your personal information, but you can just bypass that by not answering or giving a false email address if you wish to remain anonymous.

RayWolfe

Get away from thinking about "shopping" them; such an emotive word. What you would be doing is your public duty, just as much as if you saw children breaking windows. We all complain about the size and scope of the state, but the reason is that we no longer take responsibility ourselves.
Why are tax laws so complicated? Because of the crooks.

davetrousers

It's easy to do nothing, less so the right thing.

Chinkle

Is this a company your "friends" are running on the side of their day to day jobs? If not, I'm surprised the taxman hasn't already asked what they are up to. If you're not paying tax in one shape or another the Inland Revenue are pretty quick to approach you and ask about your circumstances.

In which case, either your friends have lied already or what they told you wasn't strictly true.

If they are truly friends the best thing is to advise them to come clean, not to shop them. As others have said, if business is really booming they won't stay under the radar forever and then the holidays and fancy clothes will be making way for big tax fines.