is this illegal?

meluvnext

the story, someone is working for a small business, doing huge amounts of work, definitley more than a £6 per hour job entails and you know noone in their right mind would do it for that. Basially being paid minimum wage means that she can get tax credits and nhs prescriptions free etc. To make up the short fall, her partner who is a very close friend to the owner of the bisiness is being paid self employed by the company even though he is not working for them.

Is it also illegal for someone to be paid £90 for their weekly full time wage, this shows up on their wage slip, so they avoid paying tax and NI, but actually receives cash in hand accumulating to a good £200-£300 per week.

Emmzi

c'mon. You don't need us to tell you the answer to that one.

The real question is, what are you going to do about it?

meluvnext

Well I was going to start with I know this is a daft question. I begrudge the fact I was denied a half day off for my disabled childs hospital app and this led me to hadning in my notice but things like that were going on in the business!

Hammyman

meluvnext wrote: »

the story, someone is working for a small business, doing huge amounts of work, definitley more than a £6 per hour job entails and you know noone in their right mind would do it for that.

Whether or not someone would do a lot of work for low wage is non of your concern neither is it illegal.

Basially being paid minimum wage means that she can get tax credits and nhs prescriptions free etc. To make up the short fall, her partner who is a very close friend to the owner of the bisiness is being paid self employed by the company even though he is not working for them.

How do you know they aren't? Have you seen the books? Have you followed the person to see what they do every day? And it would be daft for someone to pay someone a low pay to get tax credits to subsidise it then pay someone the money they'd saved.

Is it also illegal for someone to be paid £90 for their weekly full time wage, this shows up on their wage slip, so they avoid paying tax and NI, but actually receives cash in hand accumulating to a good £200-£300 per week.

What proof do you have of this? Have you seen their wageslip?

I begrudge the fact I was denied a half day off for my disabled childs hospital app and this led me to handing in my notice but things like that were going on in the business!

So the reality is that you've got a bee in your bonnet and are just listening heresay and rumour.

meluvnext

it is most definitley not hear say, and it is concrete evidence!

attila_

May be worth seeking professional legal advice.

meluvnext

it is not false accusations!

liney

Paying her cash in hand without the required deductions is of course illegal. Failing to declare all earnings in order to claim benefits is illegal. The question is, how do you prove it?

kelloggs36

If you have the evidence, call the tax fraud hotline - there must be one! This sort of practice is what is leading to higher taxes for everybody else as the revenues aren't there.

heretolearn_2

She is not being paid extra cash in hand though, her partner is being paid for self-employed work. Trying to prove that he isn't doing any, is going to be virtually impossible. He will (or should be) paying tax on his self employed income.

IF you want to stir up trouble for them and the employer then you could report this to the HMRC. What do you gain by that?

liney

heretolearn wrote: »

She is not being paid extra cash in hand though, her partner is being paid for self-employed work. Trying to prove that he isn't doing any, is going to be virtually impossible. He will (or should be) paying tax on his self employed income.

IF you want to stir up trouble for them and the employer then you could report this to the HMRC. What do you gain by that?

Your response could be fitted to reporting any 'crime'.

I misread slightly the first time, but if they are indeed 'laundering' her wages via her 'self employed' partner, the money that she receives from him is still income for benefits purposes, whether he pays tax on the money correctly or not.