Paying cash in hand is 'diddling the country', says HMRC
Paying cash in hand is 'diddling the country', says HMRC
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Discussion

Victor McDade

Original Poster:

4,395 posts

213 months

Saturday 28th January 2012
quotequote all
People who pay cash in hand to tradesmen are “diddling” the economy and diverting money from hospitals and schools, the country’s most senior taxman, Dave Hartnett, has warned.


Do we have a responsibility to make sure our tradesmen and women pay their taxes and is paying them cash facilitating potential evasion?

Frankly, I think an individuals responsibility ends at paying for the work done (using whatever means) and the rest is up to the person carrying out the work.

What do we think?

98elise

32,826 posts

192 months

Saturday 28th January 2012
quotequote all
I agree, when I pay for anything else in cash (In a shop or petrol station) i'm not diddling the taxman. Its the recipient who's resposible for their tax.

Its slightly different if you are asking for "a discount for cash" though. The implication is you want a share of the saved tax.

Pothole

34,367 posts

313 months

Saturday 28th January 2012
quotequote all
98elise said:
I agree, when I pay for anything else in cash (In a shop or petrol station) i'm not diddling the taxman. Its the recipient who's resposible for their tax.

Its slightly different if you are asking for "a discount for cash" though. The implication is you want a share of the saved tax.
Obtuse. That is clearly not what is being discussed in the article

Kudos

2,674 posts

205 months

Saturday 28th January 2012
quotequote all
Anytime I've paid cash for something and think I've saved a bit, I invariably find out he's done a crap job and I've had to redo. As it was cash there is limited comeback e.g. they're not interested

I'd rather a bit more, keep it official and have some comeback

Northern Munkee

5,354 posts

231 months

Saturday 28th January 2012
quotequote all
This is the man who was wined and dined by big business, and "negotiated" tax settlements that allegedly let them off with billions that rightfully should have gone to the exchequer.

No problem closing loopholes, but how about applying or simplifying the tax laws, so the taxes already due are collected.

This man is damaged goods, obviously not satisfied with his pension pot, he's bitter he's not getting a knighthood.

Let he without sin...

paddyhasneeds

68,372 posts

241 months

Saturday 28th January 2012
quotequote all
It does seem a rather ironic lecture on tax avoidance.

Murph7355

42,042 posts

287 months

Saturday 28th January 2012
quotequote all
Northern Munkee said:
This is the man who was wined and dined by big business, and "negotiated" tax settlements that allegedly let them off with billions that rightfully should have gone to the exchequer.

No problem closing loopholes, but how about applying or simplifying the tax laws, so the taxes already due are collected.

This man is damaged goods, obviously not satisfied with his pension pot, he's bitter he's not getting a knighthood.

Let he without sin...
Well said.

Getting tired of govt officials lecturing everyone when their own house is very far from in order.

Let's see him stopping these "deals", and MPs following the same tax rules as everyone else first. Then let them preach from the moral high ground.

Pothole

34,367 posts

313 months

Saturday 28th January 2012
quotequote all
Northern Munkee said:
This is the man who was wined and dined by big business, and "negotiated" tax settlements that allegedly let them off with billions that rightfully should have gone to the exchequer.

No problem closing loopholes, but how about applying or simplifying the tax laws, so the taxes already due are collected.

This man is damaged goods, obviously not satisfied with his pension pot, he's bitter he's not getting a knighthood.

Let he without sin...
You didn't read the whole article did you?

Dtel said:
MPs last month accused Mr Hartnett of being “unduly cosy” with big companies and of applying double standards to corporations and ordinary taxpayers.
It was alleged he agreed “sweetheart deals” with companies including Goldman Sachs and Vodafone that allegedly let them off large bills worth millions of pounds to HMRC. Addressing the MPs’ findings in an interview for the first time, Mr Hartnett insists HMRC is operating a “level playing field” and that big firms are treated in a similar way to individual taxpayers.
The Revenue’s “engagement policy” with businesses had persuaded them to pay £25 billion in tax over the past six years which they otherwise would not have done, he claims.
“We are not soft with big business, there was no sweetheart deal with Vodafone,” he said. “We got all the money for the nation that was there to be got.”
Mr Hartnett, who is retiring this summer after 36 years at the department, says the controversy has unfairly damaged the image of HMRC.
He says: “I think it has done a huge disservice to HMRC. It has done a huge disservice to the country. My own people are now more wary about how they engage with large corporate taxpayers, and large corporate taxpayers don’t want to end up on your front page.”
You sure you're without sin yourself, slinging that mud?



paddyhasneeds

68,372 posts

241 months

Saturday 28th January 2012
quotequote all
How do you "persuade" someone, be it a business or an individual, to pay tax that presumably they either legally don't have to pay, or are breaking the law by not paying?

0a

24,160 posts

225 months

Saturday 28th January 2012
quotequote all
Yes "cash in hand or through the books" is a question that gets asked a lot http://www.pistonheads.com/gassing/topic.asp?h=0&a...

Oakey

27,984 posts

247 months

Saturday 28th January 2012
quotequote all
paddyhasneeds said:
It does seem a rather ironic lecture on tax avoidance.
Er, this would be tax evasion

powerstroke

10,283 posts

191 months

Saturday 28th January 2012
quotequote all
anonymous said:
[redacted]
Yes exactly and often a litle cash job say upto £100 as a extra to normal work ocasionaly gives a little to spend on a meal out or a visit to the pub or some little indulgence that helps another bussiness, cash is more likley to do the economy good than a cheque payed into the bank and just sit there, and lets face it a lot of self employed are only making wages or less , a little on the side makes it worth the hassle and paperwork.. the black economy is a benifit to a great number of ordanary folk anyway its nice to think some of our money wont be squanderd by our goverment here or in the EU looks like cameron is going to give another load of OUR money to the bail out ....

turbobloke

117,505 posts

291 months

Saturday 28th January 2012
quotequote all
HMRC is 'diddling in the wind' says country.

Buff Mchugelarge

3,316 posts

181 months

Saturday 28th January 2012
quotequote all
powerstroke said:
Yes exactly and often a litle cash job say upto £100 as a extra to normal work ocasionaly gives a little to spend on a meal out or a visit to the pub or some little indulgence that helps another bussiness, cash is more likley to do the economy good than a cheque payed into the bank and just sit there, and lets face it a lot of self employed are only making wages or less , a little on the side makes it worth the hassle and paperwork.. the black economy is a benifit to a great number of ordanary folk anyway its nice to think some of our money wont be squanderd by our goverment here or in the EU looks like cameron is going to give another load of OUR money to the bail out ....
Hit the nail on the head there sir.
I work in a predominatley cash business, when it comes to pay time. I always ask if the customer wants an invoice or reciept. So many people say, 'Nah.. ya ok' with a knowing wink like they're doing a huge favour.
It makes no oddds to me, I'm self employed but work for a company so its no benefit to me.
People

Pothole

34,367 posts

313 months

Saturday 28th January 2012
quotequote all
Buff Mchugelarge said:
powerstroke said:
Yes exactly and often a litle cash job say upto £100 as a extra to normal work ocasionaly gives a little to spend on a meal out or a visit to the pub or some little indulgence that helps another bussiness, cash is more likley to do the economy good than a cheque payed into the bank and just sit there, and lets face it a lot of self employed are only making wages or less , a little on the side makes it worth the hassle and paperwork.. the black economy is a benifit to a great number of ordanary folk anyway its nice to think some of our money wont be squanderd by our goverment here or in the EU looks like cameron is going to give another load of OUR money to the bail out ....
Hit the nail on the head there sir.
I work in a predominatley cash business, when it comes to pay time. I always ask if the customer wants an invoice or reciept. So many people say, 'Nah.. ya ok' with a knowing wink like they're doing a huge favour.
It makes no oddds to me, I'm self employed but work for a company so its no benefit to me.
People
So when they pay cash and don't take a receipt does it go through the company's books the same way is if you had given them a receipt, or not?

If it does, then tax is going to be paid in any case, so you've totally missed the point of the article.

It's not the payment method which is in question here, FFS.

paddyhasneeds

68,372 posts

241 months

Saturday 28th January 2012
quotequote all
Oakey said:
Er, this would be tax evasion
[I'm not Bluebear]Yes, good point![/I'm not Bluebear]

Buff Mchugelarge

3,316 posts

181 months

Saturday 28th January 2012
quotequote all
Pothole said:
Buff Mchugelarge said:
powerstroke said:
Yes exactly and often a litle cash job say upto £100 as a extra to normal work ocasionaly gives a little to spend on a meal out or a visit to the pub or some little indulgence that helps another bussiness, cash is more likley to do the economy good than a cheque payed into the bank and just sit there, and lets face it a lot of self employed are only making wages or less , a little on the side makes it worth the hassle and paperwork.. the black economy is a benifit to a great number of ordanary folk anyway its nice to think some of our money wont be squanderd by our goverment here or in the EU looks like cameron is going to give another load of OUR money to the bail out ....
Hit the nail on the head there sir.
I work in a predominatley cash business, when it comes to pay time. I always ask if the customer wants an invoice or reciept. So many people say, 'Nah.. ya ok' with a knowing wink like they're doing a huge favour.
It makes no oddds to me, I'm self employed but work for a company so its no benefit to me.
People
So when they pay cash and don't take a receipt does it go through the company's books the same way is if you had given them a receipt, or not?

If it does, then tax is going to be paid in any case, so you've totally missed the point of the article.

It's not the payment method which is in question here, FFS.
Shirley, if a tradesman writes an invoice for a customer, then the copy they have in thier invoice book is proof of the job being done, no invoice 'no job' money goes in the pocket, tax man's none the wiser? FFS.
It happens and the Taxman therefore has no real idea of how much 'cash' changes hands.

Pothole

34,367 posts

313 months

Saturday 28th January 2012
quotequote all
Buff Mchugelarge said:
Pothole said:
Buff Mchugelarge said:
powerstroke said:
Yes exactly and often a litle cash job say upto £100 as a extra to normal work ocasionaly gives a little to spend on a meal out or a visit to the pub or some little indulgence that helps another bussiness, cash is more likley to do the economy good than a cheque payed into the bank and just sit there, and lets face it a lot of self employed are only making wages or less , a little on the side makes it worth the hassle and paperwork.. the black economy is a benifit to a great number of ordanary folk anyway its nice to think some of our money wont be squanderd by our goverment here or in the EU looks like cameron is going to give another load of OUR money to the bail out ....
Hit the nail on the head there sir.
I work in a predominatley cash business, when it comes to pay time. I always ask if the customer wants an invoice or reciept. So many people say, 'Nah.. ya ok' with a knowing wink like they're doing a huge favour.
It makes no oddds to me, I'm self employed but work for a company so its no benefit to me.
People
So when they pay cash and don't take a receipt does it go through the company's books the same way is if you had given them a receipt, or not?

If it does, then tax is going to be paid in any case, so you've totally missed the point of the article.

It's not the payment method which is in question here, FFS.
Shirley, if a tradesman writes an invoice for a customer, then the copy they have in thier invoice book is proof of the job being done, no invoice 'no job' money goes in the pocket, tax man's none the wiser? FFS.
It happens and the Taxman therefore has no real idea of how much 'cash' changes hands.
OK, you said that you work for a company on a self-employed basis, so presumably you pass on the cash you get for the job to the company which puts that cash through its books? HMRC never really has any idea of how much is paid for work done, but it appears to me that what you described above is not the same as what is being mentioned in the article. You are not doing a job for less because the customer is paying in cash, they are just not getting a receipt for said cash.

Countdown

49,535 posts

227 months

Saturday 28th January 2012
quotequote all
powerstroke said:
Yes exactly and often a litle cash job say upto £100 as a extra to normal work ocasionaly gives a little to spend on a meal out or a visit to the pub or some little indulgence that helps another bussiness, cash is more likley to do the economy good than a cheque payed into the bank and just sit there, and lets face it a lot of self employed are only making wages or less , a little on the side makes it worth the hassle and paperwork.. the black economy is a benifit to a great number of ordanary folk anyway its nice to think some of our money wont be squanderd by our goverment here or in the EU looks like cameron is going to give another load of OUR money to the bail out ....
In theory that sounds harmless. In practise you'll find that its not the odd £100 here or there, it's usually as much as they think they can get away with. The real p155takers will even be claiming WFTC, Incap, any other benefit they think they can get away with.

There's no moral reason for this (despite people's attempts at justifying this). Its purely and simply down to greed. For some people it WILL be the odd £100, for others it will be several £000. It all depends on how greedy they are individually.

Oakey

27,984 posts

247 months

Saturday 28th January 2012
quotequote all
Buff Mchugelarge said:
Shirley, if a tradesman writes an invoice for a customer, then the copy they have in thier invoice book is proof of the job being done, no invoice 'no job' money goes in the pocket, tax man's none the wiser? FFS.
It happens and the Taxman therefore has no real idea of how much 'cash' changes hands.
It's called an audit. Not a pleasant experience according to people here who've endured one.