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Fiddling the system while working how common is this? |
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#26 |
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Join Date: Dec 2012
Posts: 3,444
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unlikely. this story serves a political agenda rather than it being a reality despite the court claiming otherwise.
Did you mean it was all fiction - Same as the reporting of The Govt scrapping their NHS computer system at a cost to taxpayers of £12-Billion - Down the drain .. |
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#27 |
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Join Date: Oct 2012
Posts: 7,703
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Do HMRC get access to your company bank account? If so then it will take minutes to work out they're bringing in £2k and only declaring a portion of that.
If they're getting paid cash in hand and a large chunk of it doesn't end up in their business account, well fair play. I'm sure 95% of us, if given the option of keeping 100% of the money or giving 30-40% of it to the tax man would choose the former. |
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#28 |
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Join Date: Nov 2008
Posts: 32,708
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Do HMRC get access to your company bank account? If so then it will take minutes to work out they're bringing in £2k and only declaring a portion of that.
If they're getting paid cash in hand and a large chunk of it doesn't end up in their business account, well fair play. I'm sure 95% of us, if given the option of keeping 100% of the money or giving 30-40% of it to the tax man would choose the former. |
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#29 |
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Join Date: Apr 2011
Posts: 10,733
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HMRC have a rough knowledge of what someone should be earning doing a job so if you go outside of a boundary for that they may send someone in.
But the tax inspectors aint exactly the sharpest knife in the draw shall we say Tax Inspector (TI) turn up at our shop for an inspection TI - I want to See your books. Dad - No you can't. TI - I want to see your books. (this exchange goes on for about 5 minutes with the TI getting rather annoyed) Eventually the TI asks why he can't see the books. Dad - They're at the accountants for year ending. TI - Why didn't you say that? Dad - you never asked. Not the greatest thing to start an audit with but when they went to the accountants and the inspector kept moaning about stuff the accountant would explain it and the TI would splutter a bit and go on to the next thing. |
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#30 |
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Join Date: Mar 2003
Location: London
Posts: 16,527
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no-one who gets cash in declares it all, even the most honest citizen, if you take £215 in a day then you'll write down £200, just to make a round figure, though rounding it up is against the rules
![]() I always reckon self-employed are allowed a few little touches as they don't get holiday or sick pay ![]() anyway, your in law is not a rich man, £500 a week with a family to feed, look out for people taking the piss more than that
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#31 |
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Join Date: Apr 2007
Location: Aberdeen
Posts: 12,197
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Quote:
Do HMRC get access to your company bank account? If so then it will take minutes to work out they're bringing in £2k and only declaring a portion of that.
If they're getting paid cash in hand and a large chunk of it doesn't end up in their business account, well fair play. I'm sure 95% of us, if given the option of keeping 100% of the money or giving 30-40% of it to the tax man would choose the former. Quote:
HMRC have a rough knowledge of what someone should be earning doing a job so if you go outside of a boundary for that they may send someone in.
But the tax inspectors aint exactly the sharpest knife in the draw shall we say Tax Inspector (TI) turn up at our shop for an inspection TI - I want to See your books. Dad - No you can't. TI - I want to see your books. (this exchange goes on for about 5 minutes with the TI getting rather annoyed) Eventually the TI asks why he can't see the books. Dad - They're at the accountants for year ending. TI - Why didn't you say that? Dad - you never asked. Not the greatest thing to start an audit with but when they went to the accountants and the inspector kept moaning about stuff the accountant would explain it and the TI would splutter a bit and go on to the next thing. |
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#32 |
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Join Date: Apr 2011
Posts: 10,733
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They have legal powers to check bank accounts. Not just the businsess'.
This sounds unlikely. A letter would have been issued before-hand notifying the business of the enquiry. The letter would contain details of what records would be required and to have them available. In between the letter and the visit there would be at least one telephone conversation to confirm the details, date, time, place etc. A duplicate letter would have also been issued to the accountant. |
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#33 |
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Join Date: Apr 2013
Location: Work, probably..
Posts: 3,837
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This was 15+ years ago so probably the rules were different, he just turned up and demanded to see the books....he was a right buffoon who probably could just about use velcro shoes.
Are they a health and safety risk or something now? Haven't seen them for donkeys years!
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#34 |
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Join Date: Dec 2014
Posts: 2,324
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Quote:
no-one who gets cash in declares it all, even the most honest citizen, if you take £215 in a day then you'll write down £200, just to make a round figure, though rounding it up is against the rules
![]() I always reckon self-employed are allowed a few little touches as they don't get holiday or sick pay ![]() anyway, your in law is not a rich man, £500 a week with a family to feed, look out for people taking the piss more than that ![]() |
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#35 |
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Join Date: May 2015
Location: 🕳
Posts: 1,852
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It's probably a common occurrence.
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#36 |
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Join Date: Mar 2003
Location: London
Posts: 16,527
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Well he's certainly richer than someone on min wage at £240 per week with a family to feed and who has to pay for there own dental care and school meals etc, see why I'm annoyed?
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#37 |
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Join Date: Dec 2012
Posts: 3,444
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I'm curious how common this is, I might be naive but I didn't think this happened.
I was talking to an in law yesterday, he told me he earns £2k per month self employed. He apparently only declares £800 of it, why I asked? To reduce his tax bill and so his wife can claim tax credits and the rest of the perks such as free school dinners, free dental care etc. It then gets better, he tells me his Mrs who only works 16 hours per week only declares 5 hours. You ****s I thought. There I am working 40 hours per week for minimum wage which is less than half of what your earning per month and we get damn all. We get some child tax credits but damn all else. It's made me wonder how common this type of scamming is? >>> Any small traders alleged tax avoidance probably pales to insignificance when compared to what multi house owner multimillionaire Tony Blairs protection has cost us each year since he quit as PM - http://www.pressreader.com/uk/the-he...82333971569729 |
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#38 |
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Join Date: Jul 2016
Posts: 449
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I know someone who used to run a nail manicure shop. She did okay for years until the advent of social media. Then she found she was losing business to people who were on benefits but doing nails on the side.
Of course with no overheads such as rent/business rates taxes etc these people could do it much cheaper. In the end she gave up the lease, putting her and her employee on the dole. Moral of the story, fiddling the system is not a victimless crime. |
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#39 |
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Join Date: Mar 2003
Location: London
Posts: 16,527
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Quote:
I know someone who used to run a nail manicure shop. She did okay for years until the advent of social media. Then she found she was losing business to people who were on benefits but doing nails on the side.
Of course with no overheads such as rent/business rates taxes etc these people could do it much cheaper. In the end she gave up the lease, putting her and her employee on the dole. Moral of the story, fiddling the system is not a victimless crime. ![]() hairdressers have been getting tax-free wages for years, all you need is a pair of scissors and a car with a bit of petrol in it
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#40 |
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Join Date: May 2012
Posts: 21,729
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Well he's certainly richer than someone on min wage at £240 per week with a family to feed and who has to pay for there own dental care and school meals etc, see why I'm annoyed?
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#41 |
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Join Date: Jul 2016
Posts: 449
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but now she's on the dole doing nails on the side ?
![]() hairdressers have been getting tax-free wages for years, all you need is a pair of scissors and a car with a bit of petrol in it ![]() |
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#42 |
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Join Date: Dec 2016
Posts: 6
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I have a family member who is fiddling the system somehow and it's really winding me up.
She's due to have a baby any day now and she told me her partner earns £36,000 a year (bragging about all these expensive gifts he buys her) she works part time and is getting maternity allowance but still being allowed to claim income support on top, she's been given the £500 maternity grant and she also recieves DLA for having OCD. I'm guessing she's somehow claiming to be a single parent even though her and her partner live together. The most aggravating thing about it, is that all she has done for the past few months is complain to us all about how she can't afford such and such, that she's struggling financially. I on the other hand had a baby this year, my partner is self-employed and due to personal circumstances hasn't been able to earn much at all. Because he works over a certain amount of hours though, we were not entitled to the maternity grant, me not entitled to any money, not entitled to anything and his wages have had to stretch to keep both me and him fed, clothed etc. the bills paid, his grandmothers care fees and everything we've had to buy for the baby. We truly have been struggling financially. I'm not usually the kind of person to go around reporting others, however everytime this family member opens her mouth to either brag about what she's getting or to complain about struggling, the more I feel like doing so. 😡 |
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#43 |
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Join Date: Jan 2015
Posts: 1,033
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Tell them it's £100 a week to keep your mouth shut.
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#44 |
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Join Date: Mar 2011
Posts: 2,939
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Quote:
Do HMRC get access to your company bank account? If so then it will take minutes to work out they're bringing in £2k and only declaring a portion of that.
The revenue are not to be trifled with |
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#45 |
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Forum Member
Join Date: Feb 2007
Posts: 24,736
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Quote:
I'm curious how common this is, I might be naive but I didn't think this happened.
I was talking to an in law yesterday, he told me he earns £2k per month self employed. He apparently only declares £800 of it, why I asked? To reduce his tax bill and so his wife can claim tax credits and the rest of the perks such as free school dinners, free dental care etc. It then gets better, he tells me his Mrs who only works 16 hours per week only declares 5 hours. You ****s I thought. There I am working 40 hours per week for minimum wage which is less than half of what your earning per month and we get damn all. We get some child tax credits but damn all else. It's made me wonder how common this type of scamming is? b) Common. I was advised to do it. Simple reason is for those people who are incorporated (usually because there clients require it because they have been poorly advised over S134 ICTA 1988). They pay a wage - usually just above minimum wage, on which any income tax and ni is then paid. All the rest of the income comes from dividends. As long as the total income does not go above the upper tax bracket the worker pays no tax. They receive a tax credit equal to the tax that was paid on the dividend. This is then declared on ones tax return. But the company pays Corporation Tax on any profit (not just that declared as dividend). That is the legal way anyway. I have not done this since ceasing to be self-employed and now pay NI/Income Tax on all my income. |
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#46 |
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Join Date: Mar 2003
Location: London
Posts: 16,527
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Quote:
Tell them it's £100 a week to keep your mouth shut.
yeah don't get mad get even, or more than even, I'd say blackmail is slighty upping the stakes
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#47 |
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Join Date: Dec 2016
Posts: 6
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I don't know how people are lying about how much they earn, in order to claim other benefits, when I was told it's based on how many hours your other half works, not how much they earn. Otherwise that would mean my partner and I would genuinely have been entitled to help for this past year at least but we haven't been.. 😕
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#48 |
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Join Date: Dec 2014
Posts: 2,324
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I don't know how people are lying about how much they earn, in order to claim other benefits, when I was told it's based on how many hours your other half works, not how much they earn. Otherwise that would mean my partner and I would genuinely have been entitled to help for this past year at least but we haven't been.. 😕
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#49 |
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Join Date: Jul 2012
Posts: 790
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Well he's certainly richer than someone on min wage at £240 per week with a family to feed and who has to pay for there own dental care and school meals etc, see why I'm annoyed?
Someone earning minimum wage of £240 per week may not even be able to cover their rent with that, let alone keep a family. Even childcare alone could exceed £240 per week. |
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#50 |
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Join Date: Dec 2014
Posts: 2,324
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Low earners with a family to feed, are able to receive child tax credits, help towards their rent and dental care.
Someone earning minimum wage of £240 per week may not even be able to cover their rent with that, let alone keep a family. Even childcare alone could exceed £240 per week. |
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