Davros it is her responsibility to register herself as self employed and submit her tax returns but upon research there have been cases where tax dodgers have been caught (usually by a tip off or something) then HMRC have decided the client to be the 'employer' of the cleaner and backpay any tax or NI they should have been withholding.
It is highly unlikely she would only have one job when the demand for cleaning services far exceed supply and if she charges £9 per hour she'll be bombed. I just can't imagine she is earning below the lower earnings threshold and even so it needs to be declared to Inland Revenue on a tax return to be considered above board.
I think the main risk in hiring these types is that you are allowing someone who will operate illegally into your home, very often with a key when you are at work they will see all your possessions and valuables. I would prefer honest people with integrity to come into my home, I couldn't trust someone who would defraud the country by hiding income.
Also they would be unlikely to have any public liability insurance in place so what if they left the gas on and your home blew up or they caused a flood? Legit cleaners are covered by up to a million. Not so those working illegally. They are not aware of health and safety and then many have sued homeowners after an accident. in our case that is MY liability not yours but with these people it is all yours and by God don't they just know it, some have a direct line to Personal Injuries for You - no win no fee!
All our clients pay us directly into the bank, I will not allow cash payments at all as, for one thing it shows we don't keep certain payments quiet from the tax man and for another, admin is so much easier if the client pays into the bank direct instead of paying the cleaner cash who has to pass it to us and then we have to put it through the bank. We are fully insured for every eventuality too including our employees bodies as long as they were following our health and safety trained procedures.
You know it is strange that in London that it is almost the norm to hire these types of people I didn't realise it was so 'normalised', I know they are out there and I once asked the director of our domestic cleaning association about them, he said he didn't think there was much of it about nowadays although his business is in Birmingham. I suppose it doesn't affect us too greatly as we are selling to a different market but it is the underbelly of our industry, there are cowboys within every trade I guess.
Davros I really appreciate you hearing my (our) views on this as I represent everyone who is struggling to set up a cleaning service to be proud of, I went through similar struggles myself at first and I feel the pain of the newer start-ups up against such downward pressure on their price before they tap their true market.
I think one thing that puzzles us all about this issue is that, although most people live within a certain budget as they must, we feel cleaning should not be the thing to skimp on price as you are letting this service into your very home, with all your possessions and valuables, they hold a key to your house (we are insured up to a million for key holding - are they?). What's more they are untrained to use the harsh chemicals they must correctly, they are not aware of health and safety (but WILL be aware of Personal Injuries For You - oh yes!) Cheap can work out to be VERY expensive.
It's everyone's own choice as to what risks they would or wouldn't take in life but just be aware of these risks and be a little discriminating as to who you allow to deliver this highly personal service for you. We personally don't need any more business right now for ourselves (until we grow again), but I hope to spare someone from some of the horror stories I have heard from clients who hired 'cleaning ladies' who cost them thousands this way and that (oak flooring all downstairs ruined with bleach for one!). Be really careful is my message here.