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Broker suspicious I'm committing fraud...

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  • cadon
    cadon Posts: 132 Forumite
    You'll need to sort out this tax mess. You've got 4 years of tax returns to submit - one of them isn't late yet, but I doubt you'll be able to resolve this in time to meet the January deadline. So let's say 4 years of late returns.

    There are fines for not submitting tax returns, for not paying tax and for not keeping records. I would put the house buying on ice whilst you sort this debacle out for two reasons: firstly, buying a house is stressful enough without dealing with something like this and two, you may find the penalties eat into the pot of money you had set aside for your deposit/solicitor's fees, etc.

    Tax evasion can be considered money laundering, so I'm surprised your broker took that line of questioning - it could be construed as tipping off.

    Anyway, as far as action points go, you need a tax advisor - one with experience of HMRC enquiries and/or mediation. Ask about their experience and what qualifications they have (one of more out of the following would be good: ATT, CTA, ACA, CA, ACCA, CIMA).
  • dunstonh
    dunstonh Posts: 119,676 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Ahh come one, a bit of undisclosed earnings - you wouldn't be the first.

    £30k over 3 year is not a bit of undisclosed earnings. Its tax evasion. For a broker/adviser, it would be a mandatory financial crime report. If the adviser didnt do it, they could be subject to prosecution.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • ACG
    ACG Posts: 24,555 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Ahh come one, a bit of undisclosed earnings
    A BIT?

    My barber charges £10.

    If you divide £11,000 by £10 you are talking nearly 100 people a month.
    If they charged £20 a pop its still nearly 50 people a month.

    Thats not cutting your mates hair for a few quid, thats a second job.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • csgohan4
    csgohan4 Posts: 10,600 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Photogenic
    Do I have to pay tax on my earnings, the OP doesn't, why should I?
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • Contact HMRC immediately to disclose this income. For a start contacting them yourself will go much better for you when they calculate penalties. As you have now told this broker who has your personal details they may report you anyway so better to do this yourself.
  • MaebyJade
    MaebyJade Posts: 143 Forumite
    Eighth Anniversary 100 Posts Combo Breaker
    Ahh come one, a bit of undisclosed earnings

    If you use the figures given by the OP; she made £9k in a year from 1-2 evening a week (assume 4 hours per evening). To put it into perspective, if that was a full time job (8 hours a day) then here earning would roughly be £36k-£40k per year, the year she made £11k that would be £45k-£50k per year.
  • MaebyJade wrote: »
    If you use the figures given by the OP; she made £9k in a year from 1-2 evening a week (assume 4 hours per evening). To put it into perspective, if that was a full time job (8 hours a day) then here earning would roughly be £36k-£40k per year, the year she made £11k that would be £45k-£50k per year.

    Irrelevant - the tax threshold doesn't change because it's part time hours. She's underpaid tax, there's no doubt about that, but don't take it too far.
    I am a mortgage adviser.
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Mods - can we change the title of this thread to "EVERYONE suspicious I'm committing fraud...."
  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    Hi all,

    Broker couldn't give much advice as she was suspicious of me so needed help here :(

    I have a regular job and pay tax and student loan through PAYE.
    Apparently I am also self employed but didn't think of it.

    My self employment consisted of starting working Christmas 2012 doing make up, hair cutting/styling at weddings and places and it went from there.
    Christmas 2012 - April 2013 - a few hundred £
    April 2013 - April 2014 was about 11k
    April 2014- April 2015 was about 9k
    April 2015- Now about 9k

    Was just cash in hand, 1-2 evenings a week. Just used that money to pay for things and hardly put it in the bank so no evidence there that I was self employed. I only realised when speaking to a broker who asked if I had additional income and I told her about my side 'job/hobbie'. calculated the above figures and got back to her and she gave a mortgage in principle after a credit check.

    She asked me about some SA3 something form and asked about tax. Told her I never paid anything and she asked why not. I said I didn't even think of it (I know it's my fault). She asked if I had just made these up to get a higher mortgage, which is financial fraud. Also, no tax is paid, so tax fraud too.

    Did research on 'employedandselfemployed. c o. uk' website and calculated how much tax I will pay, 7k!!! inc NI & Student Loans. HMRC penalties included mounted to 9.5K !!

    Went to the high street shop/accountant and told them about my situation and they asked if I had evidence/paper work that I had made this money. I said all cash in hand and didn't put it in the bank. They said am I making all this up last minute to get a higher mortgage.

    I just want to correct things and get my mortgage sorted! Please, anyone, anything?

    Well....you can't use income you haven't declared to the HMRC to support a mortgage application. In declaring that income to the broker you may have triggered an investigation and you [STRIKE]may[/STRIKE] will(?) now be liable to pay the tax that is rightfully due on the income and possibly the penalties for not paying the tax on time.

    I'm not really sure what you want us to say. You earn money then you declare it and pay the tax due. If you had met your self assessment responsibilities at the beginning you may have found that there really wasn't much tax or NI due.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • ACG
    ACG Posts: 24,555 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Mods - can we change the title of this thread to "EVERYONE suspicious I'm committing fraud...."
    Add a comma after EVERYONE and remove the word suspicious?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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