Cash in hand

[S.H.A.D.O.]

Hello

I get paid weekly cash in hand.

I have worked for my employer for almost ten years.

I occasionally bring the subject up at work and ask if I can be paid straight in to my bank, I am told I benefit from being paid this way.

I receive a monthly pay slip

I am forced to travel to the bank periodically to deposit my wages, its a bit of a standing joke with the staff as they ask where the cash has come from, I don't think they even believe I work.

My question is - why do you think my employer chooses to pay me (and all the other staff) this way, I may be naive but I'm sure its not for our benefits and I'm concerned it might bite me on the bum later regarding N.I. tax and pension.

Edited by S.H.A.D.O. on Saturday 3rd February 15:28

[crofty1984]

Sounds very dodgy to me.

[Vaud]

crofty1984 said:

Sounds very dodgy to me.

^^ what he said

[Butter Face]

What do you do?

[S.H.A.D.O.]

Butter Face said:

What do you do?

Motor trade

[Mexman]

Do you have a contract of employment?
Pension contributions ( which is law now)?
Does your payslip show tax/N.I ?

[ericmcn]

for all of the above i would be astonished for a yes.

[cat with a hat]

haha

Come on?

Are you seriously asking?

This is what should be going through your head right now: https://www.youtube.com/watch?v=SlZMVAydqaE

[jmorgan]

You can check your state pension online. It will show your payments over the years. Bit of a faff to log into the government site first time though.

[S.H.A.D.O.]

Mexman said:

Do you have a contract of employment?
Pension contributions ( which is law now)?
Does your payslip show tax/N.I ?

1. No

2. Yes, started a nest pension last year, minimum contribution. I was thinking more about state pension but just checked the online forecast and it appears to be ok.

3. Yes

Thanks for the replys, having read my original post again I agree it does sound somewhat 'dodgy' I don't think its that bad but my employer is obviously the one benefiting.

The main inconvenience to me came when I wanted to open a new bank account, I couldn't, also I don't think I would be considered for a loan or mortgage, I don't need either but I'm thinking more about my much younger colleagues here.

[Tyre Smoke]

Are you happy in your job? I'm guessing the answer will be yes.
Are you overly concerned you will be investigated by the DWP for unearned income? I'm guessing yes too. Otherwise why post on a public forum.

In short, your employer is fudging the system by under declaring your earnings. Thereby defrauding HMR+C from PAYE and NI.
Morally you should report them. Do you want to open a can of worms?

[edc]

You can call the HMRC and ask for a statement of your earnings. It will show money earnt and supposedly paid, tax and NI.

[blank]

Cash not matching pay slip is potentially an issue, but there's nothing necessarily wrong with cash in hand.

I've been paid in cash in previous jobs, all above board with pay slips including tax, NI etc.

Small companies with a mostly cash income tend to do it to save having the cash paid in to the bank and therefore save on fees.

Obviously it makes it easier to fudge turnover, tax etc but being paid cash isn't always dodgy!

[Douglas Quaid]

What’s the benefit to employer to show you earning X amount but actually pay you more?

[PorkInsider]

Douglas Quaid said:

What’s the benefit to employer to show you earning X amount but actually pay you more?

As an example, if the employer claims to pay you £10k per year but actually pays you £25k per year they save £2k+ in employer’s NI contributions.

They will also be saving on not be paying the correct pension contributions.

[S.H.A.D.O.]

Tyre Smoke said:

Are you happy in your job? I'm guessing the answer will be yes.
Are you overly concerned you will be investigated by the DWP for unearned income? I'm guessing yes too. Otherwise why post on a public forum.

In short, your employer is fudging the system by under declaring your earnings. Thereby defrauding HMR+C from PAYE and NI.
Morally you should report them. Do you want to open a can of worms?

Thanks again for the replies, its confirmed what I've thought for a while.

To answer a few comments and questions

Yes I enjoy my job and actually really like my employer, I'm not wanting to get anyone in trouble so the can will stay shut.

We are not talking about huge sums of money, I'm in the minority of PHers earning less than 20k

My colleagues will be made aware, unless its just happening to me.

I'll start a new thread shortly about my pension in the hope someone here can shed some light, I've searched the forums and learnt quite a bit but i'm really confused about the hole I seem to be in!

[S.H.A.D.O.]

anonymous said:

[redacted]

No I will hand myself in straight away, thanks for your advice

[Douglas Quaid]

PorkInsider said:

As an example, if the employer claims to pay you £10k per year but actually pays you £25k per year they save £2k+ in employer’s NI contributions.

They will also be saving on not be paying the correct pension contributions.

Yes but what about the reduction in profit and therefore tax if they declared the full 25k? The 15k off profit is worth more than 2k.

[Connectors]

anonymous said:

[redacted]

Where did the op admit to that?

[7184c]

Check your national insurance record here to find out if they have been paying what they should from your payslip deductions.

https://www.gov.uk/government/organisations/hm-rev...

If not your in a difficult position on what to do and as others have said probably not worth discussing in a public forum.