Tax evasion !
Author
Discussion

dugless

Original Poster:

317 posts

264 months

Friday 3rd February 2006
quotequote all
I have a female friend who is professionaly self employed,works a 40 hour week,20 hours in 1 place,20 in the other,permanently...

While chatting she was moaning about the amount of tax she has to pay,so I suggested just dont declare one of the jobs which she wasnt into at all ut got me thinking..

In a circumstance like this,if you dont declare earnings for paying tax,what can happen to you ? , are you just made to pay it after they investigate,or do you get locked up with the keys thrown away ?

Boosted Ls1

21,200 posts

291 months

Friday 3rd February 2006
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They can assess what you owe and demand payment. After that I think it becomes a civil matter, county court etc. I don't think you can be locked up for non payment but am not sure about that.

She may also face criminal charges of some sort if the police believed her evasion was deliberate as opposed to her just being disorganised

Boosted.

Eric Mc

125,855 posts

296 months

Friday 3rd February 2006
quotequote all
Tax evasion is a CRIMINAL offence with resultant fines, penalties, interest charges and possible jail sentences if found guilty. Just research the Lester Piggot case if you want to see what can happen. In certain circumstances the court decision may be more lenient when, as you say, when you can plead special circumstances (see the Ken Dodd tax case. But you will still be found guilty.

Once the case has been proven against you, you will be required to pay all the missing tax underpaid going right back to the time the evasion began (there are no time limits here - we are talking fraud and criminal offences). Penalties will also be charged on top of the outstanding tax - and the penalties can be equal to the underpaid tax. Interest will also be charged on the late tax AND on the penalties.

It's not worth it. She needs to get herself descent accountant who will advise her on the legitimate ways to optimise her tax position. In many ways, she is in amuch better position than most PAYE earners as the Self Employed are usually able to take a more flexible approach to their taxes - without breaking any laws.

victormeldrew

8,293 posts

308 months

Friday 3rd February 2006
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EricMc said:
descent accountant
Amusing typo! I have an image of a base jumper in a pin stripe suit for some reason!

Eric Mc

125,855 posts

296 months

Friday 3rd February 2006
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It's too amusing to change. Obviously, I should have said an "ascent" accountnat.

wedg1e

27,044 posts

296 months

Friday 3rd February 2006
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Ken Dodd joked that when he started work, tax was a penny in the pound. Fifty years later, he thought it still was

wedg1e

27,044 posts

296 months

Friday 3rd February 2006
quotequote all
.... and on the original topic, if you chucked a £100K a year job and went on the dole, are you guilty of tax evasion...?

TeamD

5,060 posts

263 months

Friday 3rd February 2006
quotequote all
wedg1e said:
.... and on the original topic, if you chucked a £100K a year job and went on the dole, are you guilty of tax evasion...?


Interesting point, I'm sure the IR would find a way to "deem" you guilty of tax evasion even if it weren't the case. B@st@rds!