This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Client Evading VAT, Tax

hilton98
Posts: 5
Joined: Wed Apr 11, 2012 10:40 am

Client Evading VAT, Tax

Postby hilton98 » Fri Feb 06, 2015 12:02 pm

Hi I was wondering if someone could help me. I am an accounts assistant in a small practice. I was recently preparing a tax return for a client (Pizza Shop, Take-Away)

Whilst I was bored on my lunch break I had a nosy peak on Just Eat, noticed the client was selling through just eat. I informed my employer and notified them that we had not received the Just eat statements and I believe he has sales through Just Eat.

At first I didn't think the client was hiding his sales I merely stated this fact about Just-eat because they charge commission on their sales which is tax deductible expense. I mean I have had clients in the past who included their Just Eat sales among st their total sales and then gave me the Just Eat Statements separate to claim back the commission charges as an expense.

Few days later I got told just finalize the accounts the client has said he does not have just eat, so i went to my employer and showed him. I was basically just fobbed off. I was a bit annoyed because i was treated badly for just going out of my way and trying to get an extra tax deduct able expense claimed for the client which he had missed off. So I went back on Just Eat and started reading through the reviews, there are so many reviews on a daily basis that I believe he is evading VAT and not declaring his true sales.

Can someone advise me on what I should do here, I am sorry but I know its my job to save my client tax and I will more than go out of my way to do this correctly which in a way which would be allowable in the eyes of HMRC but this kind of blatant fraud I cant stand. I seem to have been shot down for doing my job correctly.

GlobalTaxAdviser
Posts: 633
Joined: Fri Dec 05, 2014 1:18 am

Re: Client Evading VAT, Tax

Postby GlobalTaxAdviser » Fri Feb 06, 2015 1:03 pm

Hi

Its very commendable you feel strongly about this as many people would just a blind eye. Just wish there was more people like you.

You can report him in confidence to https://www.gov.uk/government/organisat ... ax-evasion or http://www.nationalcrimeagency.gov.uk/

While it is confidential your client may find out two and two together and accuse you of informing HMRC or SOCA.

You may also consider if you want to stay with an employer that doesn't condone this misdemeanour

hilton98
Posts: 5
Joined: Wed Apr 11, 2012 10:40 am

Re: Client Evading VAT, Tax

Postby hilton98 » Mon Feb 09, 2015 10:56 am

Hi,

Thanks for your help, I think I might follow your advice but keep a slight delay until i inform the HMRC to avoid suspicion falling on me. I am assuming I wont be allowed to do the work for the 2014/2015 accounts and once these are submitted I will raise my concerns. I have the name of a local compliance officer I dealt with on a few VAT cases last year. She seemed easily approachable so I was hoping to just contact her. Do you think that is a good idea?

As for staying with the employer, I kind of have no choice I have been searching for other jobs for last year and a half and have had no luck, in all honesty the clients I deal with personally are good and I enjoy working with them and have a very good relationship with them. I have a lot of clients that I have personally introduced to the practice and I feel obliged to stick around and do their work seen as they only deal with myself.

hilton98
Posts: 5
Joined: Wed Apr 11, 2012 10:40 am

Re: Client Evading VAT, Tax

Postby hilton98 » Mon Feb 09, 2015 11:04 am

POST DELETED

GlobalTaxAdviser
Posts: 633
Joined: Fri Dec 05, 2014 1:18 am

Re: Client Evading VAT, Tax

Postby GlobalTaxAdviser » Mon Feb 09, 2015 11:13 am

The Job market is picking up so there should be more opportunities.

You may also consider starting up on your own especially since you have "personally introduced" clients to the practice.

Why not just take these clients that you have given to the practice and start up on your own. If you have a client base then you should be able to scale up quickly,

Always better to have control of one's destiny than let someone control your own.

section 44
Posts: 4468
Joined: Thu Oct 30, 2008 12:47 pm

Re: Client Evading VAT, Tax

Postby section 44 » Tue Feb 10, 2015 2:07 pm

there are so many reviews on a daily basis that I believe he is evading VAT
thankfully the law requires a higher burden of proof!

hilton98
Posts: 5
Joined: Wed Apr 11, 2012 10:40 am

Re: Client Evading VAT, Tax

Postby hilton98 » Wed Feb 18, 2015 12:23 pm

there are so many reviews on a daily basis that I believe he is evading VAT
thankfully the law requires a higher burden of proof!
Your comment couldn't be further from the truth, however please read my original post where the client has denied having Just Eat sales all together. My intentions were just to claim the commission charges as an expense.

wamstax
Posts: 1869
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: Client Evading VAT, Tax

Postby wamstax » Wed Feb 18, 2015 12:39 pm

Reading your post it seems that the information received by you is second hand regarding denial of Just Eat and that you have not spoken directly to the client. In that event all you have is suspicion that the client hasn't claimed a tax deductible expense and there may be a breakdown in communications as regards the Just Eat sales not being included in the turnover. Contacting an HMRC officer direct is not particularly smart as you are not operating within the appropriate guidelines for making for example SOCA (old name) reports through the relevant SOCA report officer within the firm that you are employed by. Additionally there is no guarantee that the officer you contact is appropriately trained to receive and deal with "covert" information.

Be careful in what you do as if you get it wrong - in other words you need some cogent evidence that profits are being understated before taking the step of making SOCA etc reports
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

wamstax
Posts: 1869
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: Client Evading VAT, Tax

Postby wamstax » Wed Feb 18, 2015 12:41 pm

Be careful in what you do as if you get it wrong - in other words you need some cogent evidence that profits are being understated before taking the step of making SOCA etc reports - you could be providing false and misleading information and actionable against you if the client ever finds out
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

section 44
Posts: 4468
Joined: Thu Oct 30, 2008 12:47 pm

Re: Client Evading VAT, Tax

Postby section 44 » Thu Feb 19, 2015 2:11 pm

you need some cogent evidence
Such as:
so many reviews
?


Return to “Tax Investigations and Enquiries”