Beauty folk renting chairs - declared earnings

[jonwm]

Hi all

Maybe wrong section as not employment as such so apologies in advance

Sunday thoughts after visit from wife's friend today.

Short of it is she was telling my wife she has been renting a chair at quite a posh Beauty place and can't believe how much she's making blah blah, she does between 250 and 350 a day and is working just 2 days a week, outside was a nice 3 series so don't dis believe her, now the bit which winds me up is the fact she insists on cash so she can keep earnings declared under £10k for the tax man.

I'm thinking this cash world of hairdressers is totally under the hmrc radar, how on earth can you prove anything other than what they say, nothing is paid into the bank it's all kept in her cash tin then at home.

Anyway I'm enrolling the wife on a hairdressers course tomorrow seems good money in it

Cool story and all but just wandered if hmrc do have ways of seeing these things

[jonwm]

I perhaps worded it wrong, I didn't think it was accepted by hmrc just that she seemed to be giving the impression it was just how it worked and they all seemed to be doing it where she worked.

I've always been employed so unfamiliar with cash in hand type affairs

[jonwm]

jsf said:

What you said was she was making sure her declared income was below £10K whilst earning more than that in cash.

Do that and don't be surprised if you end up in Jail.

That's kind of why I asked really, how would they ever know to be able to check, all her earnings are cash, she has no means of taking card etc, she submits presumably or not that she did 10k this tax year and carries on regardless the next

Edited by jonwm on Sunday 8th January 22:29

[jonwm]

Interesting replies, my nigling anxiety has reduced knowing they do check this type of thing!!
Being nosey I checked her personal Facebook from my wife's phone and she is quite blatantly advertising for appointments to direct message her rather than through the shop she works at.

Also to quote above poster the BMW was white and in standard 318 M Sport guise with huge aftermarket wheels

[jonwm]

She rents a chair so is self employed, I don't think she does a tax return, conversation flowed as though she doesn't have to as it's under the threshold, I'm not 100% on specifics as I was ear wigging but she always dresses well 2 holidays a year minimum and partner is electrician also self employed but works as a subby

[jonwm]

Sheepshanks said:

She's probably "off-the-grid".

My missus used to work for the Contributions Agency and they were pretty active in going after people in disguised employment etc. She left a long time ago and since it was merged with HMRC quite a few years ago there doesn't seem to be the same impetus.

I'd probably agree with this, just asked the wife in convo what she did previously, neglecting to say I was venting all over PH

Worked at hair salon (employed) left about 3 years ago to have child, did a bit on the side whilst kids were at home as you do, now he is at pre school she does 2 days at this fancy salon for herself, over the last few months she has got more and more "work" from clients, word of mouth, walk ins and is basically working 12 hours on the 2 days she works and doing between £250 and £350 takings per day, costs are her chair £25 and products (not a clue how much!).


Deffo in the wrong game me

[jonwm]

Thought I’d do a quick update on this thread to stop my anger coming out in the real world!!

Said hairdresser still doing the dodge with the SA as still only taking cash, just paid £11k for a wedding through her bank! Told the wife she just put it in and transferred it out!!

Please tell me people at HMRC get notified by the banks of such large deposits??

Doing more days now as it’s “easy money” I’m losing the will with how people still get away with this!!

Anyway rant over, feel a tiny bit better now telling you strangers about it :-)

[jonwm]

Good point I should try something different! Being a wage slave to a multi national is never going to make the kind of money I would like, I guess there is something to be said about being entrepreneurial and having a go yourself I ld be to scared if truth be told!

I’m going to put this down to her get up and go and the freedom taking a chance gives you with your taxes!

[jonwm]

Hoofy said:

Is she married? Her husband could be supporting her. I know of a few massage therapists etc who work part-time while their husband slaves away for a corporate.

Lives with boyfriend currently he’s self employed too as a trade on a building sore not sure which, maybe joiner