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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 ..

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.

I think they can check how much interest you've earned and if that doesn't tally with their other records, they can get a court order to delve further.

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.

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

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.

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.

Velcro Shoes Are they a health and safety risk or something now? Haven't seen them for donkeys years!

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?

It's probably a common occurrence.

you should be more annoyed at your guvnor then your in law

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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

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.

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

No i don't see why you're annoyed because of this fictional scenario.

No she is back working albeit as an employee.

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. 😡

Tell them it's £100 a week to keep your mouth shut.

Ya, the top officers at the revenue can walk into your bank, and get a copy of your statement with zero warrant (OTOH the police need one). Some even have arrest powers

The revenue are not to be trifled with

a) It is not a scam

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.

yeah don't get mad get even, or more than even, I'd say blackmail is slighty upping the stakes

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.. 😕

For working tax yes this is the case for things like free school dinners, dental care etc it's how much is earned, child tax might also be this way. We are entitled to child tax, damn all else and that's myself and mrs on min wage.

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.

Yes we get CTC and help with rent that's it. As for childcare yes you are right which is why my OH works evenings when I'm at home.