Income Tax Evasion query

libradoll

I am curious as to the practical implications of completing HMRC's tax evasion form. I am considering grassing someone up. I know this doesn't sound very gracious, but I'm thinking about doing this for a variety of reasons, admittedly not all in the best possible taste. I will be considering the moral implications aside before taking any action. In the meantime, I would like to know what is likely to happen if I was to take action.

Someone I know has been working self-employed for over ten years for the same company earning approximately £55,000 a year. This company will have records of everything that is paid to this person as it is quite a big outfit nowadays. Person in question rents a property worth approx. £250,000 and has no assets apart from the contents of the property. No savings. He hasn't disclosed any income in all this time and brags about "not existing" as far as HMRC are concerned.

If HMRC are informed of this, what action are they likely to take?
How long do investigations of this nature take?

This is common knowledge amongst many people in my town and he is well known and disliked. As much as I am surprised that no one has grassed him up, it could be anyone who has chosen to do this. However, I am concerned that if HMRC were to present the form completed to him at any stage, he may think it is me from the depth of information provided etc. I know that HMRC say it is confidential and anonymous but I am dubious of what information would be passed on and whether it would be enough for him to know I am the informant.

I know grassing isn't the most popular of pastimes and I have always been strongly against it, but it will take me far too long to go into detail of the background to this and I simply want to know the answers to these questions based on fact and I will address the question of ethics later.

brendon

From my understanding, you can remain anonymous by simply not filling out the "Your details" section of the form.

Gas_Powered_Toothbrush

libradoll wrote: »

However, I am concerned that if HMRC were to present the form completed to him at any stage, he may think it is me from the depth of information provided etc.

HMRC won't pass any details of the report to him. He probably won't even know there is a report.

John_Pierpoint

I got a form from an address in Glasgow, sent to me by chance, asking me to grass on a neighbour.
Quite frankly I think HMRC has reasons to be worried, but all I could do was suggest an alternative plan of attack, which they could have taken from the comfort of their desks.

nomunnofun

In my day, receipt of an anonymous letter or telephone call was given priority over almost anything.

Generally the first action was to send an innocuous looking form (33, I believe) to the person in question. No reply would necessitate a reminder before being passed to the inspector (or whatever they are called now). Tax returns would follow.

Inspectors are target driven and their performance monitored like everyone else. The opportunity to reach that target, while, of course, acting in the best interests of the taxpayer, will not be ignored.

I am sure that nothing has changed.