a strange one - Advice needed

williamD1964

In 2008 we had major work done on our property and used a local guy to project manage. This was done and no problems occurred. The payments for materials were all paid for by me and receipts kept. He would be paid incrementally as the work progressed, but I never kept receipts for payments made to him. Silly I know.

I come in from work today and find that my wife was interviewed today by Brent council, about what his role in the extension was, how much he was paid etc. She showed them what receipts we had etc and was asked to sign a written statement. It appears he is being investigated for fraud. What type of fraud she wasnt told.

My question is, have we done anything wrong? Can we be held accountable for anything. As far as I was aware he was responsible for paying his VAT, NI etc.

Any comments would be appreciated

Tixy

My guess is that if he was being investigated for under-declaring income it would be HMRC investigating rather than the council. Maybe they are checking in relation to benefits he has claimed.

I don't think legally you have done anything wrong its not like you asked for a better price for cash in hand or anything like that before the job started I presume? Obviously it would have been better to have had receipts. Can you prove how much you paid him from your bank statements etc if you need to?

williamD1964

I think so. But was nearly 3 years ago, have trouble remembering last week!

tealady

Hi I wouldn't worry too much after all you haven't comitted any crime. He could have been claiming housing benefit and they need some evidence of when he was working.

king100

It is not for you to worry about VAT and NI you do not own the business.

The most likey fraud he might have committed is benefit fraud, VAT is a HMRC issue.