hmrc tax evasion - Report

Jason.Dewsbury

Hi All,

I have repoted about two months ago two takeaways they have been doing tax evasion for years but nothing happens.

The owners only report small of their income and the rest all cash hand never been reported and thats not all both owner claim other benefits and working tax credit. I know all this because i wroked there for five months and left.

Can anyone help me how to write good report to hmrc or why they not even looking at the report i have sent to them?

One of those takeaway make over 30,000 a month and they only report about 10000 to 12000 a year and hmrc not even looking at the report.

Thanks for all your comment and help.

DorsetGirl_2

How do you know??

Jason.Dewsbury

DorsetGirl wrote: »

How do you know??

I worked there for almost half an year and they talk about it all the time and laugh how they can keep doing for amlost 14 years. how can he cliam working tax credit if the shop make over 30,000 month even if they say 30 profit that will make that will make it over 100,000 year of income. I know they never show the delivery orders to the tax man only the shop orders he told me this so many times.

DorsetGirl_2

Sour Grapes?

Notmyrealname

Jason.Dewsbury wrote: »

I worked there for almost half an year and they talk about it all the time and laugh how they can keep doing for amlost 14 years. how can he cliam working tax credit if the shop make over 30,000 month even if they say 30 profit that will make that will make it over 100,000 year of income. I know they never show the delivery orders to the tax man only the shop orders he told me this so many times.

Again, how do you know? Have you ever run your own business? They offset expenses against takings and that is their profit. The shop may TURN OVER £30k a month but that is a lot different to making a £30k a month profit. There are many big companies which have £100 millions turnover but make a loss.

Lets take a pizza as an example:

All meat pizza they sell for...£4
Cost of ingredients £1
Box: 20p
So the actual profit on that pizza is £2.80 (actually less when you include wages and gas/electric to make it)

So lets say they sell 1000 pizzas a week for £4 each so their income is £4000.

We've established the cost of ingredients and box is £1.20 a pizza so over 1000 pizzas thats £1200.

Shop profit is now down to £2800
Rent for the shop is £200 a week.
Profit is now down to £2600
Business rates are another £30 a week
Profit is now down to £2570
Electricity and gas are £50 a week
Profit is now down to £2520
Public liability insurance is £10 a week
Profit is now down to £2510
Two staff on minimum wage covering 8hrs a day, 7 days a week = 56hrs @ NMW = £700 (inc taking into account holiday pay etc)
Profit is now down to £1810
Advertising in local paper/fliers etc £100 a week
Profit is now down to £1710
etc etc etc...

So just with those basic expenses we've lost over 60% of their takings as legitimate tax deductible expenses and we've not even covered equipment replacement..

Jason.Dewsbury

Notmyrealname wrote: »

Again, how do you know? Have you ever run your own business? They offset expenses against takings and that is their profit. The shop may TURN OVER £30k a month but that is a lot different to making a £30k a month profit. There are many big companies which have £100 millions turnover but make a loss.

Lets take a pizza as an example:

All meat pizza they sell for...£4
Cost of ingredients £1
Box: 20p
So the actual profit on that pizza is £2.80 (actually less when you include wages and gas/electric to make it)

So lets say they sell 1000 pizzas a week for £4 each so their income is £4000.

We've established the cost of ingredients and box is £1.20 a pizza so over 1000 pizzas thats £1200.

Shop profit is now down to £2800
Rent for the shop is £200 a week.
Profit is now down to £2600
Business rates are another £30 a week
Profit is now down to £2570
Electricity and gas are £50 a week
Profit is now down to £2520
Public liability insurance is £10 a week
Profit is now down to £2510
Two staff on minimum wage covering 8hrs a day, 7 days a week = 56hrs @ NMW = £350 (inc taking into account holiday pay etc)
Profit is now down to £2160
Advertising in local paper/fliers etc £100 a week
Profit is now down to £2060
etc etc etc...

So just with those basic expenses we've lost nearly 50% of their profit as legitimate tax deductible expenses and we've not even covered equipment replacement..

I have run takeaway for 2 years before and i am an accountant too. When i reported them i worked it all out before i reported them.

I only reported them because is not fair really. the owner have 3 houses, 2 cars and he still claim benefits from the goverment how can you explain that?

System

Jason.Dewsbury wrote: »

I have run takeaway for 2 years before and i am an accountant too.

Sounds like you weren't too successful at either if you ended up working for a pizza place as an employee

DorsetGirl_2

Jason.Dewsbury wrote: »

I have run takeaway for 2 years before and i am an accountant too. When i reported them i worked it all out before i reported them.

I only reported them because is not fair really. the owner have 3 houses, 2 cars and he still claim benefits from the goverment how can you explain that?

An accountant and a Pizza shop manager
:laugh:
Right!

Jason.Dewsbury

!!!!!! wrote: »

Sounds like you weren't too successful at either if you ended up working for a pizza place as an employee

No i left because he refused to register me on the payroll. every month he said next month.

Jason.Dewsbury

DorsetGirl wrote: »

An accountant and a Pizza shop manager
:laugh:
Right!

Yes when i was studing to be an accountant.

Jason.Dewsbury

DorsetGirl wrote: »

An accountant and a Pizza shop manager
:laugh:
Right!

Why would i make all this up for. I am only trying to help the goverment to catch people make loads cash not paying taxes and they claiming benefits too. Thats why we are in such mess if there are people can get away with it for that many years and they laugh about it.