tell me I've dreamt this - DC proposing to give tax breaks to the middle classes (who can already afford this) to help them pay for their cleaners/nannies/gardeners????

Money laundering regulations aren't there to stop bankers, they are there to stop criminal gangs.

Bankers don't need to launder their money.

Cash is legal tender.
It is not illegal to use cash to pay for goods or services.
In case anyone reading this is getting confused.

?

Are you implying that the people who were paying the school in cash were acting illegally?

Are you saying that this school stopping taking cash, has rendered it not legal tender?

Do you really believe, as others on this thread, that paying someone with cash is a criminal act?

Actually about 5 years ago my children's primary school stopped taking cash for fees. Money laundering regulations, to stop those Norty bankers. The only people it stopped were the parents involved in cash in hand businesses.

So Cash, isn't always legal tender.

I think it's a great idea, for all the reasons Quattrocento gave.

The griping on this thread is really ridiculous. It seems to range from "it's DC, therefore it must be bad" (despite him getting the idea from lefty paradise Sweden) to "even if it's a good idea, it sounds unfair so we shouldn't do." .

Nowt wrong with paying cash, but if the employee doesn't declare their earnings......

And to assume that anyone being paid in cash is a criminal is wrong too.

Honestly some people, see bad in everyone, think everyone's on the fiddle. Takes one to know one, is what I think.

Should market stall holders be forced to accept cheques only, shops refuse to handle cash, taxi drivers only take credit cards?

To accuse anyone paying in cash of committing a crime is simply ludicrous.

How is it tax evasion to pay someone cash. Cash is perfectly legal tender.

What the person does with it afterwards is a cause for concern if they are avoiding declaring it - but to say that the person paying them is committing a crime or doing anything underhand is wrong.

What Quattro said. The irony of people accusing Phillip Green of tax evasion while being happy to be tax evaders themselves- by paying domestic workers cash in hand, avoid VAT on things builders and not declaring goods at customs over £145 when they come in from outside the EU - never fails to amuse me. These examples are actually where hmrc lose the most tax revenues.

For 90% cleaners i know, it's part time work - 3 hrs here, 2 hours there.. they don't earn enough to pay tax ... Yet another ill thought out notion from David Arsewipe. Totally agree with brandy.

Yes but the Government have no intention of helping people that have been most affected by the cuts because they don't give a fuck - just be clear about that. Making the middle class think they are having a tax break at the expense of illegal cash in hand workers really works for them and costs them nothing and improves the 'view' of how things are. This sector of the public have been chosen because they are the hardcore voters and so giving them something and also ruling out 'cash in hand illegals' is actually very powerful. You give a tax break and you also get to stop people going under the radar tax wise - perfect tory policy really.

This government have absolutely no intention of improving the lot of disabled people and their families (and others affected particularly by the cuts), none whatsoever because they are the minority and are by definition marginalised and 'other'. The cuts they have made will only serve to reinforce this further.

Yes but the Government have no intention of helping people that have been most affected by the cuts because they don't give a fuck - just be clear about that. Making the middle class think they are having a tax break at the expense of illegal cash in hand workers really works for them and costs them nothing and improves the 'view' of how things are. This sector of the public have been chosen because they are the hardcore voters and so giving them something and also ruling out 'cash in hand illegals' is actually very powerful. You give a tax break and you also get to stop people going under the radar tax wise - perfect tory policy really.

This government have absolutely no intention of improving the lot of disabled people and their families (and others affected particularly by the cuts), none whatsoever because they are the minority and are by definition marginalised and 'other'. The cuts they have made will only serve to reinforce this further.

Sounds very similar to the French system, Porto, except here your bank provides a service cheque book and you can make them out for any amount. The bank pays out the amount of the cheque to the employee and debits your account accordingly, then the government debits the relevant NI contributions a few days later and issues the employee with a pay slip!

They do this in Belgium under a "service cheque" system. You buy the cheques - each one cost 7.50 and pays for one hours domestic help ie cleaning, ironing, shopping. You can claim back about 2.50 of that against tax. For each cheque the govt pays the agency about 20 euros. So the low paid employee actually does better out of this than cash in hand, has tax, NI and insurance paid for them. So it's a win win situation - unless you are a black market employee. It encourages working families to employ help, and also means more people are employed.

?his will not help people that have been most affected by the cuts though.

I agree with brandy, the assumption is that many cleaners/gardeners don't pay the tax owed or claim benefits without declaring their income. This policy could decrease the benefit bill and unemployment rates over night.

The economy is going to be saved by odd job men. Hooray

Does this mean that you pay your cleaner £10 per hour then pay £4 less tax yourself so you only have to find £6 per hour?

If so then surely the govt get less tax from the person who employs the cleaner?

Molly that too would bring a large undertaxed sector into the governments coiffers great idea.

This is about making more and more people traceable tax payers and improving unemployment figures. It also costs the Government nothing and that is why childcare is not included. It is naive to think this is about giving anyone a tax break - it is about spin and artificially creating a more rosy glow around employment.

However, I will continue to pay my cleaner and gardener cash in hand of that is what they want. I am currently paying my builder (who I know very well anyway) cash in hand to do renovations to my house. It is saving me 20% on his day rate so is a no brainer for us both as far as I am concerned.

I would quite like a tax break for someone to shag my husband when I am too tired to bother, or the other way around.

Quattro what are the mechanics of a "tax break"?

Exactly noddy it just shows either a level of political naivety or that the government just does not give a shit and is trying to cause further divide and resentment.

What about a tax break to buy ready made bung in the oven dinners for everyone who is too busy/knackered/lazy to cook!