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dh is evading tax by buying firewood cash in hand

(62 Posts)
saladdodger2015 Wed 28-Jan-15 12:53:29

We've switched firewood suppliers and the new one is half the cost. Its very much a guy doing it for beer money, no website, no invoice, no company just cash in hand.

Aibu to be concerned about this?

SirChenjin Wed 28-Jan-15 12:54:47

Depends where he's getting the wood from...

poorbuthappy Wed 28-Jan-15 12:56:29

And would assume he's also not declaring the spending through the books?

toldmywrath Wed 28-Jan-15 12:57:24

It's not your DH evading tax & how do you know that the supplier isn't declaring it anyway (he just might be)
So YABU to be concerned from any tax viewpoint.However,I hope the firewood is well seasoned & fit for purpose- it might not be as good quality is all.

ihatethecold Wed 28-Jan-15 12:58:03

We always pay for our firewood in cash.
It's the delivery mans decision whether he is going to pay tax.

BlessedAndGr8fulNoInLaws4Xmas Wed 28-Jan-15 12:59:18

Yes .
People moan about benefit fraud-
Tax evasion is the same thing.
It's wrong.

TheFecklessFairy Wed 28-Jan-15 12:59:48

When I had a woodburner I NEVER received an invoice from anybody. Always paid cash in hand. confused

It's none of your business what they do with money received - and up to them whether they declare it or not.

saladdodger2015 Wed 28-Jan-15 12:59:53

The guys said cash only as he's not vat registered, that's what concerned me. Surely legally dh is wrong as he knows the guy is not paying vat?

Summerisle1 Wed 28-Jan-15 13:00:33

Your DH isn't evading tax. So YABU to make that assumption. However, anyone supplying stuff at half the usual going rate is cutting some sort of corners. It might well be that the wood is crap or more likely, been liberated from somewhere.

BlessedAndGr8fulNoInLaws4Xmas Wed 28-Jan-15 13:01:03

Never pay cash without an invoice- those people who do are complicit in tax evasion.

poorbuthappy Wed 28-Jan-15 13:01:15

Sorry I thought you must be buying it for a company since you were concerned about no invoices etc.
Not your worry - you pay in good faith - its up to the supplier what he does with the money.

Gatekeeper Wed 28-Jan-15 13:01:38

he probably works for the council cutting down trees and sells the unseasoned logs rather than dumping the wood to be chipped/landfilled

YeahDamon Wed 28-Jan-15 13:01:47

I'm pretty sure companies don't need to pay VAT unless they have a high turnover (50k?).

Ifyoubuildit Wed 28-Jan-15 13:02:07

I may be wrong but don't think you have to register for VAT unless you turnover a certain amount.

TheFantasticMrsFox Wed 28-Jan-15 13:02:28

You don't have to pay VAT if you earn under a certain threshold. And you would have to sell a lot of firewood to reach that level!

Ifyoubuildit Wed 28-Jan-15 13:02:31

Great minds Yeah!

saladdodger2015 Wed 28-Jan-15 13:03:58

The wood is good quality and seasoned well. It is however a mix of hard and soft so maybe more like 35%-40% discount. Hes been surplying the local town for over 20 years, well known so no quality issues at all.

toldmywrath Wed 28-Jan-15 13:04:49

Not all self employed people are VAT registered. If his turnover is less than £72,000 then he does not have to register for VAT.

expatinscotland Wed 28-Jan-15 13:04:52

Yes, YABU.

DignityInCare Wed 28-Jan-15 13:04:57

You only have be registered for VAT if you turn over more than £81,000 a year. If the guy is only doing it for beer money I doubt he makes that much - it is a lot of beer!

WaywardOn3 Wed 28-Jan-15 13:05:43

We get all our wood free in return for giving our local carpenters daughter free riding 'lessons' on our pony :-)

LayMeDown Wed 28-Jan-15 13:05:45

Yep you dont have to register for VAT if your turnover is below a certain amount.
Should not stop him issuing invoices though and should still be decalring for income tax.

However this is not your DH's concern. I would look for a receipt even if I am paying cash so I can have a comeback if there is an issue with the goods/services. But paying cash itself is not tax evasion.

iammargesimpson Wed 28-Jan-15 13:05:58

Don't know how it works in the UK but here in Ireland, when you're self employed you need to be earning over a certain amount to be VAT registered. Being VAT registered just means that you can claim back the VAT that you pay on equipment, etc.

You would still be registered for tax, although the onus is on you to do so. So although this woodman may not be VAT registered, he may still be paying tax.

YABU to assume just because it's cheaper and he's not VAT registered that he's not paying his taxes (assuming the system is the same in the UK)

Plomino Wed 28-Jan-15 13:06:17

Unless he's earning over 81,000 he doesn't need to be vat registered . Not everyone who works on a cash only basis is a crook . As long as he is declaring it all its fine , and even if he wasn't , its down to him, not your dh.

saladdodger2015 Wed 28-Jan-15 13:06:34

Ah thanks smile no way is he taking that much! Only does a handful of delivery's each week smile

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