Why you should not pay anyone in cash .....

[2B1Gmum]

I will start by turning this on its head and saying that it is not a good thing for the recipient to be paid in cash and not declare it for the following reasons: if they do not fill in proper tax returns and register for national insurance they will not be entitled to any state pension; if they wish to buy a property a mortgage company will need proof of income in order to loan an amount that on paper they can afford it - this applies to any loan, and finally if found out it is not just a fine, HMRC can demand up to 7 years lost tax and they could be put in prison and have a criminal record .

Why you should not pay cash is also multi faceted, knowingly paying someone who is avoiding tax is a criminal offence; not having an invoice and receipt for work would mean any insurance claims as a result of shoddy workmanship, broken property etc. would be invalid and finally think about the fact that for every £10 that person is paid £2 at least should (after reaching minimum tax free income) be going to the government who needs it to pay doctors, nurses, paramedics, teachers, headteachers, social workers etc. If this or any future government feels taxes aren't bringing in enough they will eventually put up taxes for all those who do pay their fare share by PAYE or honest tax returns.

Finally I urge you to think about the hourly rates that some self employed 'cash only' workers are charging and work out what their annual income is. Recently a relative of mine paid someone a days work to add a foot in height to a garden wall - I said I hope you didn't pay cash and was told well he wouldn't have done it if not - at his daily rate, even allowing for holidays, he would have banked a six figure (cash) income. More than most doctors, more than nurses, more than teachers, in fact three or four times the national average salary. Think about your payslip, look at the deductions for tax, NI, pension contributions and see what your hourly rate is. Where I live cleaners charge around £12 an hour, that is close to £25,000 a year if they worked five mornings and afternoons a week - if they took it all as cash it is the equivalent of earning near to £29,000 a year. A loss of £4000 towards running the country. Please make sure everybody pays their fare share of tax to keep our services going, our hospitals running our schools able to afford classroom assistants (who incidentally earn on average just under £8 an hour ).

Ask for a receipt and or an invoice and ask to pay direct into a bank account.

[Veronicat]

My DP is in a trade where he gets paid cash alot. Every penny is declared as he's self employed. If he never ever had to pay for road tax, diesel, materials, tools of the trade etc then yes, he'd be rolling in it. £15 ph is nothing really after it's all taken out.

[MyBrilliantDisguise]

If you pay someone cash and they are tax avoiders you can be prosecuted, I have a neighbour who worked for HMRC for years and made a point of saying so.

For one thing you'd have to know they were a tax avoider and also know they were earning enough to pay tax. I think your HMRC friend was far more likely talking about bigger businesses who paid for stock or whatever in cash than talking about us buying a newspaper at the railway station.

[DGRossetti]

If you pay someone cash and they are tax avoiders you can be prosecuted, I have a neighbour who worked for HMRC for years and made a point of saying so.

Bollocks.

[chubley]

What employers can't do any more is avoid paying contractors through the payroll - IR35, if not deemed self employed. Even university external examiners have to go through the payroll but used to be treated as suppliers.

[BarbaraOcumbungles]

We always pay cash and will continue to do so. As long as we get an invoice and receipt then tbh I don’t much care what the recipient does with it.