tax

[michael007]

i returned money to a friend, including interest over �25,000, i asked if he informed the tax man.
My friend said he did, i doubt him.
1 - does he need to tell the tax man.
2 - how can i find out that he did tell the tax man.
3 - what can the penelties be for not informing the tax man.

Thank You.

[buildersmate]

1 - Yes
2 - You can't
3 - Pay the back tax, plus interest, plus a 'penalty tax' sum of between 30% and 100% of the back tax+interest amount, depending on whether it was a straightforward oversight or blatant attempt at fraud.

[factor-fiction]

Yes, as others have said, he should inform HMRC of the interest. He doesn't need to advise them though that he's received the initial loan amount back

[spudqueen]

Remind me never to lend you any money!

[danchip]

be grateful he leant you the money and stop trying to get him into trouble

[dzug]

It's possible the tax man will come after you - for not deducting the tax and handing it over to him when you repaid the loan.

I wouldn't pursue it too vigourously....