Is This Tax Fraud?

Seadogs_2010

Hi All
I work full time at a local company. Our boss is paying five workers cash in hand while the rest of us are on PAYE. Surely this is wrong? The boss thinks he can do whatever he likes and get away with it and he has hired five lads on 40hours a week paying them five pounds per hours.

Could someone advise me if this is right or wrong because if it is wrong im going to report it.

Many thanks

jd87

Well £5 per hour is obviously below miniumum wage (assuming they are 21 or over and not also being provided with accommodation). So you could report that for starters.

Beware though that just because someone isn't being paid PAYE doesn't necessarily mean all the correct tax isn't being paid.

Seadogs_2010

Thanks JD 87. They are all over 21 by one lad who is 20. Some of them are signing on at the jobcentre to. They arnt paying any Tax or Ni, they just pocket the lot

jd87

Well they're all stealing my taxes. Report the lot of them please.

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Seadogs_2010

what it is the owner wants cheap labour as he is trying to do up a run down pub but he doesnt want to take people on the books. He weants to pay these people 5per hour. Im only on 6per hour on the books! But I have a job interview soon for another job so im looking to get out asap.

So on the basis that some are signing on at the jobcentre, they are been paid cash in hand at 5per hour, I have a good case to report this do I?

Also one more quick things, our boss has told me if anyone asks it is the workers first day. So I should explain this to the tax fraud squad so they can put the building under surveillance?

jennifernil

Sounds like they/your boss are evading tax and NI, and there is benefit fraud involved too.

No wonder the honest employees/employers have to pay so much tax.

Seadogs_2010

I will get it reported when I get home tomorrow night. I will explain everything but I wont give my name and details.
It is very wrong and it needs sorting out.
Thanks for all the advice

Nosht

Should we not go along the American way & have incentives for whistle blowers who can have 10% of the tax/fraud involved as a reward ?

Regards,

N.

Enterprise_1701C

I'm not saying he is right in paying cash in hand - indeed he is very wrong.

I can almost understand it though - we had an employee who was a pain in the ****. We needed someone reliable that could run the office while we were out and could do the admin work and chase down leads. Turned out she was only doing part-time hours, leaving her son with our confidential information messing around surfing the "wrong" sites on our computer, and generally betraying the trust we put in her.

Whilst she was willing to admit this to our face, we had no choice but to make her redundant as we could not give sufficient proof that she had done anything wrong!!!!!!!!!!!!!! We took independant advice from more than one source on this.

We would NEVER employ anyone directly again, if we ever take on anyone again it would be on a contract basis. As it was she did everything she could do try to take our business down, fortunately she did not manage, we will have a lean period getting over paying the redundancy, but we are far better off without that leech.

I have to say there must be enormous advantages to not having people on the payroll.

I would repeat again though that it should not be done, all wages should be declared. It is possible to "sign on" while you are earning, but the earnings should be declared at the time.

I personally would report this person, if they are paying tax then there is nothing to fear

Nosht

Jane_Blackford wrote: »

I'm not saying he is right in paying cash in hand - indeed he is very wrong.

I can almost understand it though - we had an employee who was a pain in the ****. We needed someone reliable that could run the office while we were out and could do the admin work and chase down leads. Turned out she was only doing part-time hours, leaving her son with our confidential information messing around surfing the "wrong" sites on our computer, and generally betraying the trust we put in her.

Whilst she was willing to admit this to our face, we had no choice but to make her redundant as we could not give sufficient proof that she had done anything wrong!!!!!!!!!!!!!! We took independant advice from more than one source on this.

We would NEVER employ anyone directly again, if we ever take on anyone again it would be on a contract basis. As it was she did everything she could do try to take our business down, fortunately she did not manage, we will have a lean period getting over paying the redundancy, but we are far better off without that leech.

I have to say there must be enormous advantages to not having people on the payroll.

I would repeat again though that it should not be done, all wages should be declared. It is possible to "sign on" while you are earning, but the earnings should be declared at the time.

I personally would report this person, if they are paying tax then there is nothing to fear

This is the dichotomy of employing staff; if they are any good then why are they working for someone else?


Regards,

N.

chrismac1

I support what the last poster has said. A client of mine had a NMW visit and I know exactly who shopped her. The aunt of one of her employees reported her. The aunt had not bothered to either check things with my client or check the NMW rules. My client was paying the right rate - reduced - because the niece was just 16. Anyway his cage will be well and truly rattled, and for once I hope a hefty fine and a good dollop of penalties ensues. Guys like this are the ones who should get a kicking, not the decent guy trying to run an honest business.