I was going to entitle this post as 'cash-in-hand workers', but didn't want anyone to spill their tea! I don't know if these forums are being swept by HMRC either?!!
Anyway, it is just a general question/discussion. Do you think it is still fairly common for certain businesses to operate with cash-in-hand workers with all the recent changes to payroll......RTI etc?
I haven't come across it and, from an accounts angle, really would only understand how it would work if it was a cash business which was using undeclared cash earnings to pay these staff. I understand it even less given that there is every chance that the employment of a part-time casual would not incur Employer NIC liabilities.......and even then, with recent changes (employers allowance) it is probably nullified. The only way I see it being a problem is when the employee doesn't want to go 'through the books' and it becomes a recruitment issue......but is that enough to take such a risk??
I ask as I kind of don't 'get it' too much and also because I spoke to a bar-owner a while back who said that it was rife and he (as an above board publican) was disadvantaged because of it. Also, would this be reportable as someone with MLR responsibilities?? What would our responsibilities be apart from ditching client/making client see sense?
Does anyone have any experience of this or any anecdotes?
yes, it's tax avoidance (plus probably minimum wage avoidance, employing workers without the right to work in the UK, annuling insurance, etc.) and it's reportable under MLR and we get stuck with not being able to ditch them as that would be a form of tipping off.
Like yourself I've not come accross this but would imagine that it is rife especially in restaurants, hotels, small retail and seasonal agriculture.
As for how to spot it. When visiting clients it should be obvious that there are staff there that you know nothing of from the books. If you don't visit the clients then as you say, if the turnover looks about right then how do we tell?
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Isn't it tax evasion, not avoidance? I thought tax avoidance was the legal kind, as practised on a very modest scale by us plebs, and on a massive scale by big business.
yep, your completely right. One of those disjointed moments where my fingers and brain were out of sync.
If I'd have read what I'd written I'd have spotted that one straight off as it's generally one that I pick other people up on.
Oops, off now to sit up the corner facing the wall with the cone hat with a big D on it.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
My daughter has a 'cash in hand' job as an assistant at a local music shop - however, while they are not clients of mine I do know that the amounts are recorded in a notebook and sent to the accountant each month to be recorded.
The work is seasonal (mainly Christmas and Easter breaks) and she doesn't get all that much being only 17.
I did suggest that Hazie let drop that I was a bookkeeper and she would therefore be recording her earnings :)
