“ I owe £180,000 in tax and I haven’t told my wife”

[Paralytic]

Mrs Eek pointed this out to me earlier today - and being honest it's not HMRC John should be scared of, it's the liquidator or trust trying to recover the "loaned" money.

How much would someone have had to gross over the years to accumulate a £180K loan charge?

[Andy2]

People forget that only ultra rich people and large companies can do tax evasions. Small fries like us don't stand a chance and shouldn't try these shenanigans.

[DoctorStrangelove]

No tulip sherlock.

Sort of along the lines of "if it seems too good to be true it probably is".

Only little people pay taxes.

[Mordac]

How much would someone have had to gross over the years to accumulate a £180K loan charge?

Would that figure include penalties/interest?

[eek]

Would that figure include penalties/interest?

Loan charge has interest yes...

[AtW]

Would that figure include penalties/interest?

If it’s a loan charge then it probably does not (penalties - unless for non-payment for loan charge itself), but loan charge is not a final settlement.

[fullyautomatix]

Tax evasion happens at the low level as well. Just watch how many people pay their grocery shopping in cash with hundred pound notes. Most of the trades people do jobs cash in hand giving a VAT discount to customer.

However, joining a scheme leaves behind a trail that HMRC can sniff easily. When the crackdown kicked off, i think 2007ish, the busted scheme users started blaming HMRC for their woes. They said HMRC should have molly coddled them and advised them on the schemes. Anybody to blame but themselves. The bottom line is, the prospect of not paying any tax on 150k worth of earnings was very juicy and lured these mugs in. They thought this will all fly under the radar, they have discovered a loophole that is not available to anybody else, they visioned themselves as private jet setting Richard Branson types dealing with off shore trusts and mystic Seychelles based shell companies.

[eek]

Tax evasion happens at the low level as well. Just watch how many people pay their grocery shopping in cash with hundred pound notes.

That would be a clever trick - the biggest note any bank issues is £50 and most places will only accept £20s.

[SueEllen]

Most of the trades people do jobs cash in hand giving a VAT discount to customer.

They don't do all their jobs cash in hand unless they want trouble from HMRC.

[fullyautomatix]

They don't do all their jobs cash in hand unless they want trouble from HMRC.

But almost all trades people offer the option. In the past few years I have had guys quoting for Driveway, windows, doors, plastering, kitchen etc all give me the option. I have always opted for VAT included bank transfer instead. They have been fine with that, but surely if they offer it, plenty will take it.