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A few weeks ago, it was announced (in the UK) that some local police forces actually paid 'informants' on an ad hoc basis. Intrigued by this revelation, I asked our local PCC (police and crime commissioner) if, when these payments are made, the recipient is liable for income tax (PAYE) and how the money was declared to HMRC. I was told (eventually) that, being a police informant, they are not required to pay tax on these 'earnings'.
Surely this isn't right and should be classed as 'tax evasion'!?
Surely this isn't right and should be classed as 'tax evasion'!?