• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:

  • You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
  • You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
  • If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.

Previously on "Breaking the rules - How do people get away with it."

Collapse

  • Andy Hallett
    replied
    Originally posted by northernladuk View Post
    Kind of yes and no. You can get cash rewards depending on the amount of tax recovered for dobbing people in. 72000 have done it in the last 12 months.

    HMRC tax evasion hotline receives 72,000 calls - FT.com
    The amount of moody schemes I knock back, this could net me a small fortune.

    Leave a comment:


  • Old Greg
    replied
    I had a contractor colleague who had been claiming for the same daily journey for 4 years. He knew about the 24 month rule but was claiming 'because I want to'.

    Leave a comment:


  • CloudWalker
    replied
    I all comes down to "Can you prove It's a genuine Business expense if (when) your investigated?"
    If you think your company needs 2 Alienware Laptops with GTX 780ti then fill your boots!

    Leave a comment:


  • northernladuk
    replied
    Originally posted by cojak View Post
    NLUK is havin' a larf...
    Kind of yes and no. You can get cash rewards depending on the amount of tax recovered for dobbing people in. 72000 have done it in the last 12 months.

    HMRC tax evasion hotline receives 72,000 calls - FT.com

    Leave a comment:


  • cojak
    replied
    NLUK is havin' a larf...

    Leave a comment:


  • Tomo1971
    replied
    Originally posted by northernladuk View Post
    Look up their company names on a company check site and dob them in to HMRC. You'll get a percentage of the recovered tax.
    No, wouldnt do that.

    MP's fiddled their expenses for many years and just got a slap on the wrist.... whats good for the goose ;-)

    Leave a comment:


  • SueEllen
    replied
    Originally posted by northernladuk View Post
    Look up their company names on a company check site and dob them in to HMRC. You'll get a percentage of the recovered tax.

    Leave a comment:


  • northernladuk
    replied
    Look up their company names on a company check site and dob them in to HMRC. You'll get a percentage of the recovered tax.

    Leave a comment:


  • Tomo1971
    replied
    Originally posted by northernladuk View Post
    As a director you have a legal responsibility to run your finances properly. Your accountant only provides you a service. You sign the paperwork to say its correct. Just because you have an accountant doesn't mean you are in the clear. It's your responsibilty to make sure things are right and proper. Wholly and exclusively for the business is a pretty simple concept and pleading ignorance won't work. Am sure the accountants will get in to a lot of trouble as well but don't think for a minute its not your problem.
    Totally agree NLUK....

    As i said, already have the EBT thing hanging over my head so not even tempted to try and fiddle anything Ltd Co wise, just not worth the risk, however small that risk is.

    Leave a comment:


  • northernladuk
    replied
    Oh yeah... And don't listen to other contractors. Lying toss pots the lot of em.

    Leave a comment:


  • northernladuk
    replied
    As a director you have a legal responsibility to run your finances properly. Your accountant only provides you a service. You sign the paperwork to say its correct. Just because you have an accountant doesn't mean you are in the clear. It's your responsibilty to make sure things are right and proper. Wholly and exclusively for the business is a pretty simple concept and pleading ignorance won't work. Am sure the accountants will get in to a lot of trouble as well but don't think for a minute its not your problem.

    Leave a comment:


  • TheCyclingProgrammer
    replied
    Originally posted by Tomo1971 View Post
    Thinking about it, me too.

    Unless it could be bought really cheap and sold 'as new' at a price difference better than the tax saving?
    Well yes, there is that. If the difference between the new and used price is less than your marginal rate of income tax, as a means of "extracting" funds from the company it works out better off.

    Not only is it tax evasion, its also likely to get you in trouble with the VAT man (assuming you're VAT registered) if they catch wind of it.

    Leave a comment:


  • BrilloPad
    replied
    I worked with someone whose accountant insisted his company pay him £10k as a finders fee for the contract. They were the only accountants doing this. 50% were rejected, 50% got through.

    HMRC cannot check everyone.

    Leave a comment:


  • Tomo1971
    replied
    Originally posted by TheCyclingProgrammer View Post
    Maybe its because I'm tired but I'm struggling to see how this benefits anybody...
    Thinking about it, me too.

    Unless it could be bought really cheap and sold 'as new' at a price difference better than the tax saving?

    Leave a comment:


  • TheCyclingProgrammer
    replied
    Originally posted by Tomo1971 View Post
    * Buy a laptop every couple of months, sell it on eBay, pocket the money and say it was damaged at work (as we work outside in all sorts of weathers and with lots of other careless people, this could be feasible)
    Maybe its because I'm tired but I'm struggling to see how this benefits anybody...

    * Put absolutely every receipt through the business.... One put his family flights to Egypt through the business
    You get away with it until you have a random compliance check, at which point HMRC discover either a) your company has been getting corporation tax relief on things that aren't wholly and exclusively for the business or b) your company has been providing BIKs without paying the appropriate tax/NIC or c) both of the above. And then they bend you over.

    This is why its important to have a good grasp of the rules yourself. You'd be amazed at how often people turn up on here who have been claiming things they shouldn't with the excuse "but my accountant said it was OK".

    Of course, the reality is that many people will get away with stuff like this. HMRC simply don't have the resources to review every single tax return they receive. They will pick some to investigate based on risk analysis and I think they also pick random batches for checks too. That's the best they can do. Its a lot easier for them to target things like mass avoidance schemes as they can normally target many people in one fell swoop and the recovered tax is likely to make it more worthwhile.
    Last edited by TheCyclingProgrammer; 9 July 2014, 18:17.

    Leave a comment:

Working...
X