Wages .... tax dodge?

[lovelynannytobe]

I was just about to sign the contract when the family dropped a bombshell ... they use nanny tax company to sort out payslips etc but they said they only declare part of the income (up to the tax free allowance which is now 10k per annum I believe) and the rest is given as cash in hand not to be declared. I really like this family but this seems really dodgy and a deal breaker. That means that more than a third of my income would be undeclared. Are there really no severe enough legal implications to stop people doing this?

You could try reporting it to HMRC. Work Pay Rights Helpline may be someone to contact. Though really not sure what action would be taken.

Wonder why they will do it up to 10k but not over, as at that salary they would be paying employers NI already.

Is it anything to do with net wage, rather than gross? Do they think that if they pay over 10k they have to pay the nannies income tax?

I'm not sure that quite qualifies as a tax dodge, more like tax evasion.
I wouldn't take the job, if you're not making any NI contributions, you're less covered if you need to claim benefits in the future (including maternity)

But isn't the amount of employers' NI related to the salary of the employee, thus they are doing to save money or more accurately to cheat the system - surely this is fraud? Run, run as fast as you can....... If you had a problem with them later down the line, you could trust them, right?

You would also be complicit in this and would face prosecution if it came to light...

www.gov.uk/report-cash-in-hand-pay

Yes, its the employers NI. They want to pay some to look all above board but not the higher amount it would really be.
On 10k the employers NI is what? £300 perhaps.
On 20k it could be over £1500.

Maybe they should just offer less salary and do things properly.

When I was looking for a nanny job a few years ago I had eight families that wanted to pay me this way, I had another eight who didn't want to pay tax at all. It stuns me that people get away with it.

And you'd be sure they had proper employer liability insurance wouldn't you if you had an accident in their home or that they'd properly insured and serviced any car they might want you to drive? Yes, thought so!

Bet their views on benefit cheats would be illuminating!!

I was offered a position from a family that wanted to do this. They found me through an agency too.
I declined the right offer and reported them to the agency.
I still them on the agency site every few months. So obviously the agency didn't care. Shame as they are such a nice family with an interesting role.

Of course it's a tax dodge!

Report them.

This annoys me so, so much.

Outraged- yyy