At a time when the UK can least afford tax fraud, this article discusses the increasing problems that HMRC are experiencing in relation to PAYE fraud and avoidance. 1^st Contact are specifically interested in this story as it is something that can and will impact on the ordinary person and the small and local businesses that are already struggling to make ends meet at this time.  

It has been noted that there are more and more reports of PAYE fraud being perpetrated against the HMRC and the UK coffers with each passing day. More companies and private persons are trying their best to avoid paying out any taxes and are doing what they can to keep their employees monies in their own pockets or to avoid such altogether. Companies, under scrutiny, will collect PAYE  and VAT from their employees and customers, but neglect to hand that money over to the HMRC, which then spends valuable time and resources investigating the suspected fraud. Court time and lawyers fees are added onto the cost of bringing in the neglectful and the fraudsters for an appearance. Our tax pounds could most certainly be put to better use. 

For example, in Norfolk, a gang master is on trial for hiring migrant workers, paying their wages, collecting their PAYE  but not submitting the PAYE  to the Revenue Service. He was pocketing the money and living quite well off their hard work, in the years 2002-2005. The HMRC must be constantly on the watch for companies and single employers who are using all the tricks in the book to scrape every last penny that is due to the UK. However, if you find yourself suddenly unemployed through no fault of your own, and your company has to lay off thousands of workers, have a second look at your PAYE  submissions. You may have been paying too much over the past few months or years and are due for a substantial return. That along with your redundancy pay might keep your mortgage or bills paid for a few months if you budget like a hawk.  

In a most recent news bulletin, Cathy Brady, the manager of the Birmingham Football Club was re-arrested for alleged tax fraud. She and her partner, David Sullivan, have been under investigation for money laundering and for allegations of false accounting. The Metropolitan Police Force has been working with the HMRC to investigate the claim of not paying PAYE  for two players in the football club in 2002-03. Of course, the football club is standing behind its employees and their plight, saying that all accounting has been in order. 

It seems that no one or no business is beyond scheming or trying to avoid paying PAYE  on their earnings. It is becoming more and more apparent that the HMRC is investigating more suspicious reports of false filings of income tax and subsequently more PAYE  losses. The UK is in desperate need of these funds to take care of our overall infrastructure and schools, hospitals and public welfare system. With a recession in our midst the UK has less money with which to work. Everyone has taken a hit in their pocket. More and more schemes and off-shore industry is being manoeuvred to take money out of the UK purse.  

For any accountancy advice related to taxes, 1^st Contact will be very happy to help. Use any of the links on this website to get in touch.

1st Contact Tax offers specialist tax services to contracting professionals.
These services include: Contractor Accounting, Contractor Umbrella payroll, Personal Tax for Contractors, Limited Companies for Contractors and Contractor Financial Advice.