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Self Employed but Anonymous - No Tax or NI???!!!!!

I have been working on a contract with a so-called "self employed" floor layer. I have got quite friendly with him over the last few weeks and we got talking about finances. It turns out this guy is acting a sole trader but not paying any tax or National Insurance - it sounds as though he is what you would describe as "anonymous". This has been going on for a number of years and he has never been bothered by the authorities.

Am I being naïve here when I think that the large sums of money being paid (by cheque usually) into his account would go unnoticed? How can this guy get away with this when I am paying massive amounts to the government and receive nothing but inconvenience when it comes to self assessment etc?

I asked what he would do if he got a knock on the door and he said his house etc. is in his wife's name and that he would claim he was "out of work" but not claiming benefit for the last year.

Am I missing something here!?

Col.

Reply to
dylancollector
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Not particularly uncommon. Many of these people get tired of the worry, and the fact they cannot risk buying property (suppose this guy's wife walks out on him; he isn't exactly going to be able to go to court for his share). Then the problem becomes: "How do I get back into the system without attracting the attention of the authorities?"

The answer is to get low paid Sch E employment and he will probably still escape notice. Sch E goes hand in hand with honesty as Sch D goes hand in hand with fraud.

Reply to
troysteadman

wrote

Basis?

Reply to
Tim

stealing from all of us. :-(

Reply to
matt

The obvious common-sensical plain-as-the-hand one that-is-in-front-of-your-face.

Reply to
troysteadman

wrote

Poppycock. If this were true, there'd be an incredibly easy & worthwhile solution for the authorities to stop all of this "fraud" -- ... simply remove Sch D!!

Reply to
Tim

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