Contractor tax cheats

**AtW** · 13 November 2020, 07:45

42

**TheGreenBastard** · 13 November 2020, 08:36

Originally posted by NadJ View Post

I've just come across a right muppet and cheat who has been contracting for the last 3 years and has some how managed to get away with getting paid directly into his personal bank account. Though in theory allowed and still possible to manage your company financial lin this way, somehow I doubt he's paying the right tax.

He's probably not the first. At the last place another guy used to insist on cheques made payable to his company which was conveniently called FIRSTNAME LASTNAME LTD and openly admitted to having the freedom to cash them wherever he likes.

My question is simple, how do these people get away with it? Don't HMRC have systems where known big agencies have to enter data about which companies they are paying so that signals can go off when those companies declare zero income? If not, why tf not?!?

Yes, there are agency regulations regarding reporting to HMRC.

Tax fraud is common everywhere, don't let it bother you, unless you have the balls to give HMRC a ring.

**Andy2** · 13 November 2020, 08:53

Originally posted by TheGreenBastard View Post

Yes, there are agency regulations regarding reporting to HMRC.

Tax fraud is common everywhere, don't let it bother you, unless you have the balls to give HMRC a ring.

even if you give them a ring they are unlikely to do anything out of sheer incompetence

**Whorty** · 13 November 2020, 08:54

Originally posted by TheGreenBastard View Post

Yes, there are agency regulations regarding reporting to HMRC.

Tax fraud is common everywhere, don't let it bother you, unless you have the balls to give HMRC a ring.

This .....

I guess the OP has the following options:

1) If he's jealous that someone is getting something more than them, and they want the same, then give the tax dodge a go and see how well you sleep at night.

2) Call HMRC and let them know what is going on

3) Don't worry about what others are doing and know that there are checks in place and these people will get caught if they are in fact doing something dodgy

4) Whinge on an anonymous forum

**SueEllen** · 13 November 2020, 09:06

Originally posted by Andy2 View Post

even if you give them a ring they are unlikely to do anything out of sheer incompetence

They won't do anything because they cut the number of VAT inspectors who use to pick up on this type of fraud.

I was told when I started contracting in the 00s that I should expect a VAT inspection at some point by other contractors, self-employed people and even the ex-VAT inspectors I did a free HMRC course with. I've never had an inspection and they put all HMRC courses online...

**fullyautomatix** · 13 November 2020, 09:28

HMRC have no time for small one man contracting firms charging 300 quid a day rate. They have bigger fish to fry. Their main focus is on corporates like Amazon dodging tax as well as Dutch Antilles registered remuneration schemes which promise 100% retention.

**vetran** · 13 November 2020, 09:46

Originally posted by fullyautomatix View Post

HMRC have no time for small one man contracting firms charging 300 quid a day rate. They have bigger fish to fry. Their main focus is on corporates like Amazon dodging tax as well as Dutch Antilles registered remuneration schemes which promise 100% retention.

Yeah because they provide better free lunches.

**wattaj** · 13 November 2020, 09:48

Originally posted by NadJ View Post

I've just come across a right muppet and cheat who has been contracting for the last 3 years and has some how managed to get away with getting paid directly into his personal bank account. Though in theory allowed and still possible to manage your company financial lin this way, somehow I doubt he's paying the right tax.

He's probably not the first. At the last place another guy used to insist on cheques made payable to his company which was conveniently called FIRSTNAME LASTNAME LTD and openly admitted to having the freedom to cash them wherever he likes.

My question is simple, how do these people get away with it? Don't HMRC have systems where known big agencies have to enter data about which companies they are paying so that signals can go off when those companies declare zero income? If not, why tf not?!?

So, and in summary, you have no evidence of impropriety, but are nonetheless aggrieved by something or other.

Good post; well played.

**Paddy** · 13 November 2020, 09:51

Originally posted by NadJ View Post

I've just come across a right muppet and cheat who has been contracting for the last 3 years and has some how managed to get away with getting paid directly into his personal bank account. Though in theory allowed and still possible to manage your company financial lin this way, somehow I doubt he's paying the right tax.

He's probably not the first. At the last place another guy used to insist on cheques made payable to his company which was conveniently called FIRSTNAME LASTNAME LTD and openly admitted to having the freedom to cash them wherever he likes.

My question is simple, how do these people get away with it? Don't HMRC have systems where known big agencies have to enter data about which companies they are paying so that signals can go off when those companies declare zero income? If not, why tf not?!?

Calling your company FIRSTNAME LASTNAME LTD is quite common. Getting paid by cheques or even cash is not illegal. Furthermore, it is not unlawful to get paid into a private bank account for a limited company. The payments will be held on trust and must be declared to HMRC. The downside is that it leaves his/her private bank account open to scrutiny. There are difficulties opening bank accounts for limited companies and he chose to do in that way. He has not done anything unlawful. However, by you calling him/her a cheat opens yourself for an action damages for liable even if you don't name him. The mere fact that he could read your post and be identified is enough to sue you personally. I suggest you retract your allegations.

Contractor tax cheats