Is this fraud?
Discussion
Badda said:
Eric obviously doesn’t know what the word Selfish means. I wonder why a man would want to pay for his own daughter’s car repairs. It’s such a conundrum. It’s either because He wants to help out (and also be naughty with the tax) OR it’s because he’s very selfish and wants to reduce his tax bill AT ANY COST.
He is being selfless in as much as he wants to help his daughter, he's being selfish in that he wants to get us all to chip in to "reduce his costs."Something can be good and bad at the same time.
If it's a £1000 repair bill and he's willing to swap his integrity for a couple of hundred quid tax break then good luck to him.
To the OP if you feel bad about it tell your father in law that you've already paid the bill and you're very grateful for the thought.
It was actually quite a reasonable question - and was answered in quite a reasonable way. I even offered detailed accounting transactions that the father in law can use if he wants to process the payment through his business WITHOUT committing any sort of tax or VAT fraud.
If the OP came back and acknowledged the advice he's been given it would be nice of him. He has gone rather quiet.
If the OP came back and acknowledged the advice he's been given it would be nice of him. He has gone rather quiet.
Eric Mc said:
It was actually quite a reasonable question - and was answered in quite a reasonable way. I even offered detailed accounting transactions that the father in law can use if he wants to process the payment through his business WITHOUT committing any sort of tax or VAT fraud.
I suspect people have not properly read and thus not understood the simple process you set out - the outcome of which is that the director/proprietor effectively pays the garage bill and the VAT. In other words, there is no tax advantage to anyone, anywhere - and so no fraud. It's exactly the same as the FiL paying the bill out of his own pocket although possibly with some timing difference.rockin said:
I suspect people have not properly read and thus not understood the simple process you set out - the outcome of which is that the director/proprietor effectively pays the garage bill and the VAT. In other words, there is no tax advantage to anyone, anywhere - and so no fraud. It's exactly the same as the FiL paying the bill out of his own pocket although possibly with some timing difference.
Effectively, yes. Depending on the circumstances, there might even be the possibility that the father-in-law could end up PAYING Income Tax (and maybe even NI) on the transaction - rather than saving any tax.I'm sure that is the last thing that he would want but it just shows how careful one needs to be in these types of situations.
limpsfield said:
Christ this is painful!
Agreed...The FIL offerers to pay a bill. OP thinks/suspects he is committing fraud. Where did this come from? Seriously?
All tax angles are covered (Eric as usual) and the thread still it goes on...
OP, just take the money and let you FIL sorts out the tax (as he is a businessman I am guessing this will happen anyway), or don't take it and pay the garage yourself.
"Is this fraud?" - No it bloody well isn't. Grow a pair.
Is he evading tax - maybe, but we don't know. Is he putting you and his daughter in danger - absolutely not.
I cannot believe this thread is still going.
Sorry, been away for a few days!
I’ve had a catch up and would certainly wish to thank Eric for his input - I too thought the question reasonable enough, but have been around these parts long enough to expect some t
ttery from those who find such an open enquiry naive.
To those who failed to understand what I have already spelt out; this is not a question of cost for myself or my wife.
Families/relationships are complex and there is some history that would be too long-winded to explain, but let’s just say me throwing my cheque book at it would likely not go down well on her side of the family. I am tacitly ‘expected’ to let FIL help her out on this occasion, and have been told as much by my wife.
I guess, like some others here, I found the apparent generous act suffered a loss of credibility as a result of what I suspected was a tax dodge.
Oh and I’m quite capable of making my own call on what to do but I thought the situation interesting enough to warrant chewing over with others. And as stated at outset, was keen to ensure I hadn’t missed something that cast a different light on matters.
Badda, you have been quite vocal and I’d be grateful if you could clarify why you find yourself “amazed”. It’s not clear to me why you find me naive? Are you suggesting that a more worldly man such as yourself would just shrug and accept that this stuff is rife? Or that by having principles I am an obvious pleb?
I’m not seeking an argument, but on the one hand you seem happy to pour scorn on me for not just cracking on with it, but then tack on the qualifier that you of course “don’t approve of tax evasion”... Not sure that’s how the game of cricket is played.
I’ve had a catch up and would certainly wish to thank Eric for his input - I too thought the question reasonable enough, but have been around these parts long enough to expect some t
ttery from those who find such an open enquiry naive. To those who failed to understand what I have already spelt out; this is not a question of cost for myself or my wife.
Families/relationships are complex and there is some history that would be too long-winded to explain, but let’s just say me throwing my cheque book at it would likely not go down well on her side of the family. I am tacitly ‘expected’ to let FIL help her out on this occasion, and have been told as much by my wife.
I guess, like some others here, I found the apparent generous act suffered a loss of credibility as a result of what I suspected was a tax dodge.
Oh and I’m quite capable of making my own call on what to do but I thought the situation interesting enough to warrant chewing over with others. And as stated at outset, was keen to ensure I hadn’t missed something that cast a different light on matters.
Badda, you have been quite vocal and I’d be grateful if you could clarify why you find yourself “amazed”. It’s not clear to me why you find me naive? Are you suggesting that a more worldly man such as yourself would just shrug and accept that this stuff is rife? Or that by having principles I am an obvious pleb?
I’m not seeking an argument, but on the one hand you seem happy to pour scorn on me for not just cracking on with it, but then tack on the qualifier that you of course “don’t approve of tax evasion”... Not sure that’s how the game of cricket is played.
Edited by BarryTone on Wednesday 25th July 23:55
BarryTone said:
I am tacitly ‘expected’ to let FIL help her out on this occasion, and have been told as much by my wife.
Must admit, it does sound like you are looking to make a mountain out of this particular molehill.If your wife is happy with this help, then move on! Happy wife, happy life!
Strikes me as mildly irrelevant whether her dad is gaming the system a bit here, just let him make the gesture and get on with life. Several folk have pointed out your wife is pretty unlikely to be implicated in the major tax dodge scam here, why worry? Life really is too short.
BlackLabel said:
NorthDave said:
Your tone in the original message implies maybe your wife doesn't have equal access to funds - I would find this more awkward than anything.
Was thinking the same. OP you’re acting as if you’re doing your wife some huge favour by “throwing your chequebook at it” lol.
Gassing Station | Finance | Top of Page | What's New | My Stuff