#HMRC #IncomeTax #TaxEvasion #DeclareIncome
Hey everyone! 👋 Need some advice on a tricky situation. So, my parent hasn’t declared their income or paid income tax for about 5 years now 😬. Running a company with employees and not paying taxes is definitely not a good idea, right?
We’ve tried to talk to them about it, but they keep avoiding the issue. It’s causing a lot of stress for the rest of us, and I feel like it’s time to take matters into my own hands. Anybody been through something similar or have advice on what to do next?
Here’s what I’m thinking:
– Researching the potential consequences of not declaring income and not paying taxes
– Contacting HMRC to see what steps can be taken to rectify the situation
– Maybe seeking advice from a tax professional to help navigate this mess
Any input or tips would be awesome! Thanks so much for reading. 🙏
I know someone who did a similar thing, when HMRC found out they made them pay back the owed tax.
It is probably best to come clean and that way hopefully it will be a better outcome.
If they’ve not paid tax since 2019, it sounds like they’re not planning to and hoping to avoid getting caught.
They’re going to have to pay the tax and might be able to avoid heavy fines by getting the ball rolling.
https://www.gov.uk/report-tax-fraud
Why should some people get away with evading tax?
Why are you stressed. Worst case scenario is the tax man realises and sends him a bill. Normal ppl don’t go to jail for tax ignoring. He’s probably only owing forty grand
It’s not your problem. Don’t sign onto any of his loans or properties.
Or like. Just do his taxes. It’s not that hard
The worst outcome is that they will have to pay back the tax they owe plus interest plus a penalty of 100% of the taxed owed. The easiest way to reduce this is by getting in touch with HMRC before they investigate you. They are much more lenient on people who self-report rather than having been investigated and declare afterwards.
Also just to note, you say that they have two employees, have they been reporting that income to HMRC every month and deducting the relevant tax and NI from their employees income and paying that to HMRC?
> I am going to be taking this into my own hands as much as possible because it seems this will be the only way for it to be dealt with.
Is your parent on board with you “dealing with” their tax affairs?
If not then there’s not much you can do short of going nuclear and reporting them for tax evasion.
HMRC aren’t in general going to talk to you about the details of someone else’s tax unless you have clear authority to act for them.
Are they taking care of PAYE and NI and pension for the employees`/
By all means show them how to confess, but keep your name off any company documents or bank accounts. Do not pay anything out of your own accounts.
[https://www.gov.uk/government/publications/hmrc-your-guide-to-making-a-disclosure/your-guide-to-making-a-disclosure](https://www.gov.uk/government/publications/hmrc-your-guide-to-making-a-disclosure/your-guide-to-making-a-disclosure)
[edited for typo]
When you say “runs a company”, do you mean an actual Limited Company registered with companies house that they own or are a director of, or are they just self employed?
If the former, have they been submitting corporation tax returns and confirmation statements? Are you on top of dividends vs salary etc?
If they’re just self employed and running a business rather than a company, much less to do
Consider hiring an accountant to prepare the returns and advocate with HMRC on their behalf. Will demonstrate serious intention to clear the issue up and you’ll benefit from experienced and insured professional advice.
Report them to HMRC
The worst thing that could happen? Your parents spending time in jail for tax evasion, and that is exactly what they are doing. Evading tax for 5 years is insane. It might be to late for them.