Busterbulldog

iTrader: (1)

There will be proof,inland revenue are looking at all kinds of tax avoidance,typical schemes I know of,Gas safe fitters working for a company and having a seperate registration for fiddles,same with electricians. They will already know how much has been earned,Provident will have already provided the information...hence the letter.
These people know things you wont even think about...eg..my gran aged 80 received a letter inquiring why she was claiming a council tax rebate when she had sufficient funds to pay. My wife rang them on her behalf,the lady on end of phone quoted a bank account and gave an account number.My gran knew nothing of this account.They went to Lloyds bank with the account number...there was a dormant account in nans name with 24grand in it.Nobody knows where the money came from,or who opened the account.She was fined £5000 pounds.

Dingdongler

If they want to they can mate. This happened to somebody I know, hmrc just assumed he has taking some cash in hand. So they sat down with him and had all his account statements in front of them.

They asked him how he managed to go for weeks at a time without withdrawing cash from the bank. In other words how did he pay for fuel, food etc when no cash was withdrawn and he had not used his debit card either.

I don't know the final outcome as it is a personal matter and I didn't want to pry. But basically when they start looking into you they leave no stone unturned, they are like the best forensic detectives you can imagine but with even more powers.

andy97

iTrader: (1)

Edited for accuracy

hodgy0_2

Wrong, they are looking at tax avoidance schemes, to see whether they are legal or illegal

And if found illegal the use of such schemes will be tax evasion

andy97

iTrader: (1)

Tax avoidance isn't illegal. Most avoidance will be backed up by QC opinion. If the avoidance method is tested in court by the HMRC and they win, there is no illegal aspect, just tax and interest owed.

Tax evasion is a wilful act to defraud the revenue of tax which is illegal. The description of the poster indicates to me a wilful act to evade tax by the employing company.

hodgy0_2

Yes I fully understand the difference

I am just pointing out your edit of busterbulldogs post is wrong

Hmrc are investigating tax avoidance schemes, as he states in his post

andy97

iTrader: (1)

Good so we are singing from the same hymn. I understand the Hmrc are looking into avoidance and evasion, but the poster is equating an illegal act from the company/and or contractors with some thing that is legal hence my correction

RobsyUK

iTrader: (2)

Maybe I used the wrong word...avoidance / not paid.. Not the same?

hodgy0_2

Yes, by your description they evaded tax, which is illegal

Avoiding tax is using legal means to minimise your tax bill

But tbh a lot of the time it is semantics, and increasingly HMRC are taking that view too

pslewis

They have been paid £60,000 from 2007 at 40% they will have to pay £24,000 tax - there will be NI Contributions of course.

Then the fine and interest ...... bye, bye, Xmas - tough!

andy97

iTrader: (1)

The words are evaded or evasion. That is what your mate is doing, illegal