Tax evasion - not disclosing your full income

[philly]

Has anyone of you ever considered concealing part of your income as a self-employed locum by not including some placements in your tax return? From my understanding, the only way HMRC can discover this during the review of your tax return is when they analyze your bank account statement. However, they do not ask for it every time. What is the chance of being caught out in such "tax evasion"?

[Pharmanaut]

Has anyone of you ever considered concealing part of your income as a self-employed locum by not including some placements in your tax return? From my understanding, the only way HMRC can discover this during the review of your tax return is when they analyze your bank account statement. However, they do not ask for it every time. What is the chance of being caught out in such "tax evasion"?

Don't do it - you might end up paying more back than you have 'evaded' as HMRC will 'project' their loses.
Also don't forget that they have seen it all before and will go after those who are likely to get into trouble with their professional bodies for breaking any law.

So whatever you do, make sure your put the milk back in the fridge and put the toilet seat down again (males).
They are watching you.

[culchie82]

Used to go on all the time in Ireland, when locums were paid in cash, although that's a rarity these days. Cash in hand for any job, is still hard to trace if not impossible.

[johnep]

When a company makes a payment they put this down in their accounts. Any payments for labour above a certain sum (used to be £30) have to give details to whom paid. Way back in 1957 I got into trouble as had not even thought of tax as being a student. Had to pay back £120. Since then I have been scrupulous in regards to tax, even employing an accountant when my t/o was about £1,500 from locums (was working as a rep and paying PAYE).
My neighbour is a tax investigator, so, watch out!
johnep

[philly]

I am just frustrated that no matter how honest I am with my tax return, HMRC will do all it can to prove that I am a cheat, like with mileage claims - for last year the only cost I have claimed was mileage at a rate of 40p/mile. Now I have learnt that it is not allowed reading other threads on this forum. I am going to claim it this year anyway, because I am an employee as well and that is the main source of my income, so driving to the stores as a locum every now and then is definitely not commuting.

The companies might record to whom they pay, but it does not mean that HMRC will check every single recipient's tax return, does it?

[mrmeds]

they'll be suspicious if (a) your income is less than other locums, (b) if it drops significantly from previous years.

[johnep]

What they might do if you show up on their radar is to decide on a full tax investigation, not an enjoyable or cheap matter.
My neighbour worked as a bus driver and his wife ran a successful Chinese restaurant. When he was made redundant and took early retirement, he paid the money over to settle the mortgage. The house was in his wife's name and INR immediately thought she was hiding income from the restaurant. They were harassed for two years with investigators posing as customers (having lunch at our expense!) counting the tablecloths etc to check how busy they might be etc.

Finally, the accountant at last told them that INR were making the investigation because of the mortgage repayment. Estimated cost of investigation many £1,000s, to claw back, in the end, nothing.
johnep

[Pharmanaut]

...and after filling all the forms in for some kind of tax credit for children, they asked me to pay back £750 around 2 years later. That much is not easy to find in a lump when you have (at the time, three teenagers at college). They kiindly explained it was a mistake in the allowance. However, I sent them the amount, and told them never to send any tax credit (or whatever it was called) forms to me again.

Anyway, just think, next time you are a locum you are stood their until 1300(ish) for the taxman.
The rest of the day is yours.
Might start working just afternoons.

Watch out - they do know profiles of various "trades" including that of a locum pharmacist.
I've had staff report people phoning up and asking for me.

Also don't forget in the new world of pharmacy IT there will be the Responsible Pharmacist log for the various chains; which will be uploaded to their head office. One phone call...

[phb10186]

Obviously that is illeagal, and can't be recommended.

If you don't want to pay much tax, I would strongly advise working somewhere like Jersey, where you will pay little tax.

[johnep]

So Jersey has a shortage of Pharmacists? Used to be regular adverts for jobs in Bermuda.
johnep