Possibly Tax Avoidance

#1
I work for a small company run by the owner of the business, with his wife and recently his son as Directors. The wife has no input into the business and in the 6yrs I've worked here I've never seen her. The son (aged 34) works along side me. Well I say work, he rocks into the office anywhere between 10.30-11am. Frequently leaves early and has double the amount of holidays as anyone else. Not that I mind him not being here as he does nothing when he's in.

Now to the crux of the matter, the son's wife also draws a wage from here of approximately £400 a month. Not a lot I grant you, but it does place her below her tax threshold. She does not work, at all, ever. She occasionally takes her kids to school, mostly her mum or the bosses son does, she does minimal house work and she cannot cook anything other than pasta. Their 3 kids aged between 7 and 4 either eat pasta or whatever take away crap (McDonalds, Pizza Hut, whatever) she buys. The bosses son does what little cooking is done in the house on weekends. She spends her day in the gym. A few years ago she was quite tidy, but now she looks skeletol, no tits and very haggard (she's 35).

The bosses son drives a Mercedes something or other (big car - with a 5.5litre engine, I think), which is not a company car (daddy bought his car), so no company car tax. However, all his car bills, including fuel is paid for by the company. He does approximately 500 miles a week back and for work, and running around on the weekend. He puts a mileage claim in every week for trips to Newcastle, Manchester, and other places up north (we're based in S.Wales) to cover his and his wifes fuel bill (thats right, the company pays for her fuel as well).

The company also pays his home telephone bill (I think they claim the sons wife works from home), and we also pay for overnight trips to London (they stay in the Dorchester) to see shows which are claimed under company entertainment. All mobile phone's for the son & son's wife are paid for by the company as well.

Almost forgot, the son's wife has a student loan that she doesn't pay back and differs every year, because she's below the earnings threshold. Although there is an income of approximately £40k going into the house just on wages alone, plus all the freebies they get.

Now I freely admit I'm bitter to hell about the son and wife getting pretty much everything for free, when we haven't had a pay rise for 3yrs.

But is any of the above illegal? As no tax is being paid on any of the freebies he receives from the company.
 
#2
Pics of the wife or you are lying
 
#3
Sorry but bluntly, their firm, their rules. If you don't like it, go and start your own up or do something else!
 

Wordsmith

LE
Book Reviewer
#4
I'd say some of that is fraud - particularly claiming mileage for trips that didn't happen. Some of the other stuff is tax avoidance. Try proving that he's not working from home - I'll bet he keeps a few files there.

If you're seriously pissed off a letter to the tax office (anonymous or otherwise) would start the ball in motion. Before doing so I would consider:

1) Will the company be able to absorb a big hit for back tax? No point in closing the company down.

2) Will the tip off be traceable back to you? If so, expect your future career with the company to be short.

But the tax people only have limited manpower. I suspect they will only investigate if:

A) The evasion is for a substantial amount.

B) The evasion is easy to prove.

Wordsmith
 
#5
Oi you socialist pigdog, keep your eyes off other peoples purse and be greatful you're in employment.

It's not illegal I'm afraid.
 
#6
I don't want to grass them up. I just want to know if the company has broken any rules, as if we were caught and had a big tax bill or fine, we'd probably go under.
 
#7
Any 'benefit in kind',is taxable,unless the Tax laws have changed drastically,are they fiddling,definitely! ;-)
 
#8
Check to see if she is registered as the Company Secretary, this is a formal post and can be a waged post. In most of the family businesses I have worked in it is normally the owners wife. As such they get a wage, and other employee benefits but you never see them.
 
#9
I don't want to grass them up. I just want to know if the company has broken any rules, as if we were caught and had a big tax bill or fine, we'd probably go under.
I think you almost answer your own question in the OP...

It's more than possibly tax avoidance, it is plainly tax avoidance... just that avoidance is perfectly legal, morally ambiguous certainly, and they sound a bit twattish but none of it looks like EVASION.

To be honest the savings in tax are so small that the tax office would probably ignore it even if it was seen as evasion, it doesn't sound like they are raking it in, though of course they could all be taking huge dividends as well... If it was truly dire their accountant would be warning them off as well.
 
#10
If it's a limited company, they will have an accountant who does a set of accounts each year and whatever they take out of the company will be based on his advice. He won't sanction anything unlawful because he has his reputation with the tax authorities to consider.
 
#11
Why the big paragrapgh about what the son's wife cooks, or not, what she looks like, and what the kids eat. None of your business.
 
#12
If your skills are transferable, go elsewhere then bubble them. If not and you are stuck there, bite the bullet and carry on drawing your salary, I would presume the unemployed route would be worse for you.

You do seem to know a lot about the wife, are you stalking her in your spare time?
 
#13
Why the big paragrapgh about what the son's wife cooks, or not, what she looks like, and what the kids eat. None of your business.
Just setting the scene of how lazy she is, even her hubby moans about it, all the bloody time. And I was just venting some steam.

Why the post complaining about it anyway? It's none of your business. ^~
 
#14
If your skills are transferable, go elsewhere then bubble them. If not and you are stuck there, bite the bullet and carry on drawing your salary, I would presume the unemployed route would be worse for you.

You do seem to know a lot about the wife, are you stalking her in your spare time?
Every day I hear ad nauseum about her from the bosses son. I thought I'd share the pain.
 
#15
Every day I hear ad nauseum about her from the bosses son. I thought I'd share the pain.
Carry out a simple test to ease your conscience;

Is this women worth fingering after the Xmas function - Yes / No?

If yes, do not mention tax anymore.

If no, ring HMRC immediately.
 

The_Duke

LE
Moderator
#16
They are taking that much time and effort to draw in a £40k household income? They should be jailed for wasting time on such a meagre tax avoidance scheme.
 
#17
Carry out a simple test to ease your conscience;

Is this women worth fingering after the Xmas function - Yes / No?

If yes, do not mention tax anymore.

If no, ring HMRC immediately.
In light of the findings of the above test, can this thread be closed?


They are taking that much time and effort to draw in a £40k household income? They should be jailed for wasting time on such a meagre tax avoidance scheme.
That's just the declared wages. Bearing in mind they don't buy their own food shopping (his mum does), he takes home bog roll from work, and if they have a family day out it's paid for by daddy. Even with all that his house is mortgaged up to the hilt, his credit card is maxed out, he's got a huge loan he's repaying, and they're about £5k in to their overdraft. And daddy has declared he's on his own with his debts, as he's had a guts full paying them off in the past, just for him to rack them up again.

Oh and just in the theme of sharing info, he's 5'10" and weighs approximately 24 stone.
 
#18
In light of the findings of the above test, can this thread be closed?




That's just the declared wages. Bearing in mind they don't buy their own food shopping (his mum does), he takes home bog roll from work, and if they have a family day out it's paid for by daddy. Even with all that his house is mortgaged up to the hilt, his credit card is maxed out, he's got a huge loan he's repaying, and they're about £5k in to their overdraft. And daddy has declared he's on his own with his debts, as he's had a guts full paying them off in the past, just for him to rack them up again.

Oh and just in the theme of sharing info, he's 5'10" and weighs approximately 24 stone.
Ahhh, in that case his TA pay is topping up his main salary.
 

The_Duke

LE
Moderator
#19
In light of the findings of the above test, can this thread be closed?




That's just the declared wages. Bearing in mind they don't buy their own food shopping (his mum does), he takes home bog roll from work, and if they have a family day out it's paid for by daddy. Even with all that his house is mortgaged up to the hilt, his credit card is maxed out, he's got a huge loan he's repaying, and they're about £5k in to their overdraft. And daddy has declared he's on his own with his debts, as he's had a guts full paying them off in the past, just for him to rack them up again.

Oh and just in the theme of sharing info, he's 5'10" and weighs approximately 24 stone.
Are you seriously getting a sad on about someone proffing the bog roll from work? That would be the whole British Army up shit creek if we applied that as a measure of being a jack git.
 
#20
Sounds like the OP is bitter about something , the company sounds perfectly legal and the MD`s wife and daughter not being present is none of the OP business ,they may well be down as a consultants and they may well have meetings at another location, as I said none of his business , if your not happy working there fcuk off somewhere else , you've not signed up for 22 years.
 

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