Would you pay your nanny in cash?

[AtheneNoctua]

And I don't means illegal tax avoidance. I know someone who pays her nanny in cash because the nanny has asked her to. The mum uses a well known tax/payroll company and does everything by the book for this nanny. She just hands the nanny cash instead of writing a cheque or making a bank transfer.

I told her this was a very bad idea. Could I get some more opinions/advice from the seasoned nanny employers (and nannies) so I can point her here and show her just how silly she is being?

sounds a bit suss. Are you sure this nanny is legally in the country? Is there a reason why she can;t get a bank account?
AFAIK she has covered herself if she has set up the PAYE, but it would be interesting to find out why she wants to be paid this way

I do temping and normally get paid cash but I'm self-employed, seems unusual these days if a person is employed.

The nanny is definitely here legally.

My concern is that nanny could one day claim she had never been paid and demand to be paid again.

AtheneNoctua - your friend needs to get a receipt book asap and get each receipt signed by nanny every time.

I don't really see the paying in cash being an issue for your friend later on if she's happy to do so and has a signed receipt

Some people just like to be paid in cash - although its unusual these days.

I would say that your friend needs to get her to sign to say she has received her pay. afterall your friend could say she has already paid her when she hasn't iykwim? that way everyone is protected.

Oh yes, receipt is good idea. And she could get them signed for the cash she has already paid her.

AtheneNoctua - has your friend asked why the nanny wants cash? Obviously depending on how much she gets paid, its prob a nightmare for your friend as most banks have a limit of £300/500 a day.

I personally prefer being paid striaght into my bank account,get paid monthly and at end of month as then mortgage and bills come out on the 1st of the month.

If your friend is happy to pay cash then get a reciept book and get both to sign it whenever the nanny gets paid - weekly/monthly - date and sign the amount and tear off top copy and give to nanny, employer keephold of the book

Well its not unheard of (used to be a very normal way of being paid, I can even remember jobs I got paid cash for as a teenager, all totally legit). I presume the nanny is given a payslip with the money?
Agree that the best safeguard would be for her to sign receipt of the money.

DH is a builder and subcontracts a labourer. All payment is legitimate and taxed, and the payee receives a payslip. He just prefers to receive cash weekly. I didn't think there was a problem with it.

Can someone explain why it my be a prob for HMRC as I might need to get DH to change this.

Thanks

i dont think it is a problem with HMRC, but more just incase employee/employer fall out and then employee says they hasnt been paid.

yes employer can give pay slips,but they wouldbe no proof of payment with cash so also wise to BOTH sigh a reeipt book, whatever the position is,builder/nanny etc

thanks imananny.

Will get DH to get labourer to sign a receipt. They are on very good friendly terms, but you never know..