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Should I report cash in hand work to hmrc not being taxed?

3 replies

Possiblynot · 29/11/2013 22:38

Have name changed.

Just as the title suggests. Someone I know is doing cash in hand work for a company "off the books". Not a huge amount but around £500.

Just getting a feel for opinion. I pay my tax and fill in tax return forms for additional work other than employment for around the same value, so I guess I am a bit, I do so why shouldnt you?

OP posts:
MrsAMerrick · 30/11/2013 07:37

report. I know you will get lots of responses telling you that people who are working cash in hand are probably poorly paid, that big corporations are carrying out huge tax dodges etc etc. That doesn't make this right. The value of the amount being defrauded is irrelevant.

I used to have a hairdresser who came to our house, and when I went to pay her by cheque she asked for cash as she didnt want to declare it "because the money goes to buy essentials for my kids so I dont want the tax man to get it". Whereas obviously I blow my income on wild living whilst my dc go shoeless, so I need to pay tax Wink. She drove a brand new 4x4 and had several foreign holidays each year. I refused to pay cash and our relationship went downhill..

The tax system is there to pay for the basic essentials which everyone in society benefits from. Therefore everyone should contribute.

sneezecakesmum · 01/12/2013 10:27

Report them if they are perfectly capable of paying tax but are being greedy.

I would be more sympathetic to someone struggling financially but morally tax should be paid by all of us.

poshfrock · 02/12/2013 12:32

But how do you know they're not reporting it OP? Do you see their tax return? Or have they just told you ?

Presumably the company they are working for keeps a record of payments made to contractors ? It will all come out when the company is audited if they are not complying with the law.

BTW I think the OP should report provided they are certain about their facts.

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