MFW's - a dying breed?

InMyDreams

setmefree2 wrote: »

The reason - so the urban myth goes - that it's easier to put undeclared income into PBs and other govt accounts is thay are not actually notified to the tax man. Savings accounts, which attract tax, are notified to the tax man. Thus, when he/she checks your tax return he checks that they tally with these (notified) savings accounts. So if you declare interest of £1000k they check that this tallys with what the banks have told them.What (I thought) Fen girl was saying is that when they check a tax return that they don't check PBs etc nor do they check current accounts(as these are not notified to the tax man and they don't have access to them) so cash could pass through a current account and into PBs without ever appearing on HMRCs radar.

Not that I would ever do this I hasten to add. In fact, it annoys me that it's going on:rolleyes:. As far as I know some people have been doing this for years.:o

:eek: I stand corrected then! I obviously lead a sheltered life. You’d have thought it easiest just to spend the undeclared cash in Tesco’s etc like Kaz says. But then maybe they do that too. Not sure how someone would ‘do it for years’ though, as there is a 30K limit isn’t there? And it’s surely not worth the sleepless nights for just small amounts. Then again, takes all sorts…

setmefree2

InMyDreams wrote: »

:eek: I stand corrected then! I obviously lead a sheltered life. You’d have thought it easiest just to spend the undeclared cash in Tesco’s etc like Kaz says. But then maybe they do that too. Not sure how someone would ‘do it for years’ though, as there is a 30K limit isn’t there? And it’s surely not worth the sleepless nights for just small amounts. Then again, takes all sorts…

£30k for you, £30k for your wife/huuby, £30k each for your kids and that's just PBs.:o
Anyway, my B-I-L and sister's business underwent a tax investigation and it's really horrible & stressful - No they didn't have any PBs:D :rotfl:but thay had put all their wedding expenses through the books:eek:...:rotfl:

I just find it interesting...I'm not advocating it for anyone:cool:

FreedomGirl

Hi,

Sorry - just had to reply, SMF.

Wedding expenses through the business books ??!!??

Half horrified and amazed, half really feeling for them for when HMRC got their hands on them...

FG

Dithering_Dad

FreedomGirl wrote: »

Hi,

Sorry - just had to reply, SMF.

Wedding expenses through the business books ??!!??

Half horrified and amazed, half really feeling for them for when HMRC got their hands on them...

FG

lol, I must admit that I had an involutary shudder pass through me when I read that! I'm scared of even having a Christmas party for me and the wife (secretary) because of the Revenue - and that's allowed!!

Heaven knows what else the Revenue will find if they're putting weddings through the company books!! :eek:

Rabiddog_2

I used to work as an IT contractor, and honestly it is NOT easy to hide money from the Taxman *.probably what people were doing was leaving a paper trail, its just that they were never investigated. There are plenty of allowable expenses which you can max out tho, which lessens the burden somewhat. (pre IR35)

*believe me, I TRIED

Dithering_Dad

What's really annoying is that they make the tax rules so draconian (IR35, etc) that a lot of UK contractors either give up and go permie or work overseas. We therefore lose a big chunk of our skilled and mobile IT workforce so businesses then moan to the government about a "skills shortage", so there is an influx of Kiwi's, Ausies, South Africans, Indians, etc. who work over here and pay hardly any UK tax!!

Mad short-sighted policies from the government aimed to grab a small amount of tax and ending up damaging UK business and causing even more tax to be lost than when they started!! :mad:

angelavdavis

I have to say, to me personally, its not worth the hassle trying to fiddle - I like sleeping well at night for a start!!!:D

My take on it as a fellow IT contractor is that I earn 3x a permanent equivalent salary, so am happy to pay whatever tax I can, unfortunately though, I don't have a wife who can use their tax allowance and take a salary