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Do the tax people know all your bank accounts even if you keep them hidden?

Discussion in 'Self Employment' started by hotmail, Jun 8, 2015.

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    hotmail

    hotmail Applicant

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    If you say bank in your brothers account and he is on paye for years is that safe to keep it looking less for yourself?
    I wouldn't do this as I fear prison too much but I know a guy who has been doing it for 5 years. This way he pays no tax and because his brother has a steady job with paye the tax people never look at his account.
     
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    thelegalstop

    thelegalstop Senior Lab Tech

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    If you are self-employed, then you do not have to have a separate bank account for your company until your turnover exceeds certain limit. However, you have legal requirement to keep your books and declare your income to the HMRC on your tax return. Failure to declare proper income, purposely hiding some income from the HMRC or indeed making unjustified deductions is not legal and may be punishable.

    In a nutshell, whilst it is not entirely illegal to keep the money on your brother's account, it is definitely unlawful to hide your income and use that bank account for this purpose.

    Have you got a company or are you considering setting up a business - is there any reason for asking that question?
     
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    hotmail

    hotmail Applicant

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    yes just setting up. i just hear lots of different things been said over the years. who knows what is the real truth. i just noticed when someone has a lifelong career and is on paye the irs never seem to look for anymore tax off them but if you are a sole trader they want to know everything. that is what a few people have told me.
     
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    Maevla

    Maevla Administrator Staff Member

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    I would not put my brother in that position in the first place if that was me. And I'd make sure I could answer any questions thrown at me about my income by the HMRC as well. If you are just starting out I'd recommend going the legal route, especially if you're not sure of what you are doing formation and accounting wise.
     
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    Paul Norman

    Paul Norman Businessman

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    The scenario you are describing is illegal, and I would strongly suggest should not be even considered. Nothing is hidden if the HMRC really want to see it.
     
    Silverisametal, Toni Rose and Maevla like this.
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    thelegalstop

    thelegalstop Senior Lab Tech

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    It's always best to adhere to the current guidelines and legal requirements. If you're not sure, you can ask a professional or consult Government websites - it's much better source of information than what people say!
     
    Maevla likes this.
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    Shard Accounting

    Shard Accounting Applicant

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    You are guilty of tax evasion. You must declare all income, failure to do so will lead to draconian penalties (including imprisonment) if you are caught, which is more than likely as you are making a living and paying no tax.

    whatever you may like to think, HMRC are no fools when it comes to rooting out evaders once they get just a sniff of wrongdoing.
     

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