Tax Evasion

wheezy57

What would anyone do if they knew of someone who was deliberately avoiding paying tax. This person is a con person who defrauds the Working Tax System, the Income Tax system and anything else that can be scammed or 'avoided'.

This person also defrauds insurance companies for repairs to car, house, land the lot. This person has so much money that cash is of no problem whatsoever. This person has a genuine job (albeit for a few hours a week) and keeps everything under limits so all benefits can be claimed.

This person doesnt tell the accountant everything - on purpose. This person does not divulge any or other income coming in.

I have know this person for a lot of years but I am always amazed at how much they get away with - consistently.

This person should be an upper bracket taxpayer, but because of cleverness and wilyness gets away with everything.

What would you do?

afly

Avoidance I have no issue with, people can get their taxes wrong which I have sympathy for, evasion is unacceptable

Quick (anonymous) word to HMRC should have it sorted. They're a nice bunch in these circumstances.

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

The IFB (anonymous) would probably like a chat with them

https://www.insurancefraudbureau.org/report/

As for benefit fraud, theres an (anonymous) online form for that too

https://www.gov.uk/report-benefit-fraud


Remember, you're funding this with your tax and premiums

wheezy57

Oh well, another dead thread then...

morgani

wheezy57 wrote: »

Oh well, another dead thread then...

Don't know what more you expected other than more ppl saying report them.

@afly has summed it up nicely

wheezy57

I asked a simple questions thats all. My question was 'what would you do? Ppl (as you put it) may have experiences which will help or not as in your post...

chewback

And he answered you!!! What else do you want???

Prothet_of_Doom

Many Self employed people earn less that you'd think.

Why ? many of the costs you pay out of Taxed income, they pay out of untaxed income.

So when I last had a full time permanent job, I drove 33 miles each way to work, and that 330 miles cost me £60 in petrol, for which I'd need about £90 in pretax income to pay for it.

So now I'm self employed (via my ltd company) and currently travel from my home office to a client 330 miles (it's less but pretend). So HMRC rates are 45p a mile, so I'll see just short of £150 in expences tax free. But my business makes £150 LESS profit, so pays less tax.

This is completely legal and is why sometimes, the self employed look better off, when they are declaring thier income to be lower than you. We all know people who appear to have a life style which is more expensive than our own, but then look at the debt free diaries, and ask yourself what impression people give to outsiders, which racking up mountains of debt.

On the other hand, cash businesses like burger bars, hairdressers, and the like, are great places for the criminally intent to do well. Does the burger bar put everything through a till? If they do, do the books actually reflect it ? £10 for the books? £10 for the back pocket ?
Money under the floorboards and in the sock draw because it's not been declared ?
Worse for society is that those places are also great for turning money from drugs into clean money. £20 from sales, but £40 rung through the till. There is a theory about the number of tanning places on merseyside, that suggests many don't have as much income as they pretend.

What would I do ? I'd wonder if I were mistaken and wonder if it's actually all legitimate. If I had real proof, I'd do something, but if not I would not.

londonTiger

you can report them. HMRC is quite understaffed from what I hear they may not even investigate. But they will prioritise investigation for the bigger fish. But it's worth making the call anyway to alert them of your suspicions.

wheezy57

chewback wrote: »

And he answered you!!! What else do you want???

I see your new here. Some answers to my question would be a good start.

wheezy57

Prothet_of_Doom wrote: »

Many Self employed people earn less that you'd think.

Why ? many of the costs you pay out of Taxed income, they pay out of untaxed income.

So when I last had a full time permanent job, I drove 33 miles each way to work, and that 330 miles cost me £60 in petrol, for which I'd need about £90 in pretax income to pay for it.

So now I'm self employed (via my ltd company) and currently travel from my home office to a client 330 miles (it's less but pretend). So HMRC rates are 45p a mile, so I'll see just short of £150 in expences tax free. But my business makes £150 LESS profit, so pays less tax.

This is completely legal and is why sometimes, the self employed look better off, when they are declaring thier income to be lower than you. We all know people who appear to have a life style which is more expensive than our own, but then look at the debt free diaries, and ask yourself what impression people give to outsiders, which racking up mountains of debt.

On the other hand, cash businesses like burger bars, hairdressers, and the like, are great places for the criminally intent to do well. Does the burger bar put everything through a till? If they do, do the books actually reflect it ? £10 for the books? £10 for the back pocket ?
Money under the floorboards and in the sock draw because it's not been declared ?
Worse for society is that those places are also great for turning money from drugs into clean money. £20 from sales, but £40 rung through the till. There is a theory about the number of tanning places on merseyside, that suggests many don't have as much income as they pretend.

What would I do ? I'd wonder if I were mistaken and wonder if it's actually all legitimate. If I had real proof, I'd do something, but if not I would not.

Thank you very much for that. It was enlightening and informative. Just what I originally asked for. However, I am not mistaken unfortunately - I wish that was the case. Hard and solid proof I have none. But I think this person may well eventually cook the goose - the one that is laying the golden egg - constantly!!

00ec25

wheezy57 wrote: »

I see your new here. Some answers to my question would be a good start.

that is an inappropriate response. lets start again: you asked "What would you do?"
given the context you provided the answer is report them. Nothing else is needed

However, you are now saying that, in reality, your suspicions are in fact your own unfounded accusations (driven by jealousy perhaps?????). So: "What would you do?"
in that context the answer now is one of the following:
a) find the evidence to support reporting them now so HMRC has something to act on
b) report them anyway on the basis they are may be in the spotlight when they subsequently overcook it
c) put up or shut up