Help with tax evasion investigation.

bluelass

Someone I know has been reported to the tax evasion authority. Their main day job is working for the ambulance service as a emergency medical technician,however they do some private first aider duties at events footie matches etc and some work as a DJ at discos and weddings on days off. My friend is convinced it could be a vengeful ex as this person obviously knew about the moonlighting and has informed the ambulance service of this too:(. What is likely to happen? my friend has been sent forms to fill in so its early days.

bluelass

bluelass wrote: »

Someone I know has been reported to the tax evasion authority. Their main day job is working for the ambulance service as a emergency medical technician,however they do some private first aider duties at events footie matches etc and some work as a DJ at discos and weddings on days off. My friend is convinced it could be a vengeful ex as this person obviously knew about the moonlighting and has informed the ambulance service of this too:(. What is likely to happen? my friend has been sent forms to fill in so its early days.

I hope whoever did the reporting feels guilty when they get their 30 pieces of silver. My friend is a lovely person.

James_B.

If they've committed the fraud then a full criminal investigation and prosecution is possible. They'll have to pay back the tax, possibly plus penalties, and could well lose their job.

Did they commit it, and if so, have you any idea why and what the sums involved are?

James_B.

bluelass wrote: »

I hope whoever did the reporting feels guilty when they get their 30 pieces of silver. My friend is a lovely person.

If you friend genuinely has done it, then they are, I'm afraid, a criminal, and need to be treated as such. The person who reported them should not feel guilty at all if this is the case, they are to be applauded.

Spidernick

All they can do is cooperate fully with the investigation, as that will be taken into consideration when the penalties added to the tax are considered. There is a lot of leeway around the level of penalties to be charged, so this is very important. There will be penalties, that is a given.

I'm afraid James_B is right and if the claims are true then this is a criminal act. If everyone paid the tax they should then the rest of us could (in theory) pay a lot less tax.

chrismac1

He's not exactly Al Capone, is he? He needs to co-operate fully and make a full disclosure of what income he's had, making sure to also disclose all allowable business expenses. Most part-time DJ's buy a lot of kit so it is even conceivable that he's made losses in some tax years and can get a tax rebate.

Whilst there probably will be fines, full co-operation on his part means they will be at the lower end of the scale. He should consider getting representation from someone who knows how to deal with HMRC.

Pennywise

bluelass wrote: »

My friend is convinced it could be a vengeful ex as this person obviously knew about the moonlighting.

It's just as likely that HMRC have asked the event organisers for a list of names & addresses of their "casual" workers. I'm involved with a local football club, and that's exactly what they've been told to produce as apparently it's quite common for people not to declare their casual earnings from being a first-aider, programme seller or steward at such events.

Further to what others have said, don't let them just fill in the forms and send them back to HMRC. I'd strongly advise them to consult a tax consultant or accountant experienced in tax investigations. As said by someone else, there are probably substantial costs to claim against the income such as equipment, travelling, mobile phone, advertising, etc., which may reduce or even eliminate the taxable undeclared income.

purdyoaten

Pennywise wrote: »

It's just as likely that HMRC have asked the event organisers for a list of names & addresses of their "casual" workers. I'm involved with a local football club, and that's exactly what they've been told to produce as apparently it's quite common for people not to declare their casual earnings from being a first-aider, programme seller or steward at such events.

Further to what others have said, don't let them just fill in the forms and send them back to HMRC. I'd strongly advise them to consult a tax consultant or accountant experienced in tax investigations. As said by someone else, there are probably substantial costs to claim against the income such as equipment, travelling, mobile phone, advertising, etc., which may reduce or even eliminate the taxable undeclared income.

Have to second that - no point in potentially exacerbating the situation by sending in returns with errors on them.


P.S. Love your signature. Poor old GB - always the fall guy. :rotfl:
Deficit 2002 - 3 billion
Deficit 2005 election - 3 billion
Deficit - 2007 - 3 billion
Deficit - 2010 election - 3 billion
Deficit today - errr - 3 billion

What happened before 2002 is clearly someone else's fault!

sinizterguy

bluelass wrote: »

I hope whoever did the reporting feels guilty when they get their 30 pieces of silver. My friend is a lovely person.

I hope they sleep well.

There is a difference between claiming the maximum allowable expenses etc and just not declaring income at all. The line is between them is a legal one.

firefox1956

If they have Legal Expenses cover on their Home Insurance would this help them ????

InsideInsurance

firefox1956 wrote: »

If they have Legal Expenses cover on their Home Insurance would this help them ????

They will give them general advice but most only cover pursuing claims, not defending, and the only on a limited number of topics of which Tax isnt normally one. Ultimately read the policy book to check