Do you do jobs for cash, and then not declare it with the taxman? (voters in the poll are private!!!)

[Dan]

Do you do jobs for cash, and then not declare it with the taxman? (voters in the poll are private!!!)

Just wondering, as it's 2019, whether there are still guys doing jobs for cash.

As a web business, all my business is paid by BACS in full up front before anything goes ahead. Or Google, who pays me 2 months after I've earned it. On a rolling basis. So it is monthly kinda thing. So there's no dodging tax for me with it. And it has caught me out in the past. Ended up with a bill too big and went bump. Folded that company a while ago.

Wondering if this day in age, when so many invoicing systems are setup direct with accounts systems, that can be accessed by various departments of governments. Whether it's a case of never giving a price in writing via a system, and taking cash, or just all honest days work and paying tax all the way.

Now you don't need to reply to the thread. Just vote. And nobody will ever see who voted.

I'm just curious.

I'll do this on all my forums and see what the % is each year near Xmas. Perhaps check annually what's changing.

(Note that if anybody from the tax office ever asked for the data, we don't record who visits a thread, or who has voted. It just adds a digit to a database like an excel file, and doesn't have a name column in it. So they'd just get lots of 1's in lots of boxes and nothing else)

 

[Deleted account]

I read somewhere that the likes of Google and Amazon pay less than 1p in the pound in UK tax ,This is the true crime

But poor old Dave down the local boozer who took some cash for a re-wire is more likely to get prosecuted

Strange times

True, but 2 wrongs don’t make a right.

Google is morally wrong but nothing illlegal.

Dave down the local boozer was wrong and illegal.

No sympathy for Dave as he is the guy who always undercuts me on rewires as he has no insurance registaration or even qualifications.
We all know Dave.

 

[telectrix]

look at it another way. say, for arguments sake, i earn £600 in a week, all cash. out of that goes £60 on diesel ( £50 tax), £70 smokes ( £60 tax), £50 beer ( £35 tax). bills and shopping £200 ( £40 tax). that's £185 tax. and y'all wonder why i balk at paying income tax .in any case, now I'm semi-retired, i don't earn enough to break the threshold.

 

[Dustydazzler]

Everyone should just put £12,000 ‘through the books’ and the rest non declared cash...

 

[Zerax]

It's worth noting too that... The tax you pay under Sched E (Employed) is significantly higher than under Sched D (Self Employed)... so all you self employed guys should think yourselves VERY lucky. That may not continue indefinitely...

 

[Deleted account]

The percentages are 56% do on occasion take cash in hand as I type this.

I have to admit I am pleasantly surprised by that, I thought it would be 80-90%.

I bet the plumbers forum has a 90-95%.

It would be interesting to see the final result.

 

[Dustydazzler]

90-95 , more like 100

 

[telectrix]

when you supply tea and biscuits to your cps assessor, does he declare it to hmrc? and do you claim it as a legitimate business bribe expense?

 

[GMES]

when you supply tea and biscuits to your cps assessor, does he declare it to hmrc? and do you claim it as a legitimate business bribe expense?

Reminds me of a former accountant I had, he worked from his home and on introduction he said it was his job to keep me on the straight and narrow, after the meeting he asked for a price to wire his summer house , I gave him a price + vat and yes you guessed it, he then asked how much for cash. ?

 

[ColinACJL]

Do you do jobs for cash, and then not declare it with the taxman? (voters in the poll are private!!!)

Just wondering, as it's 2019, whether there are still guys doing jobs for cash.

As a web business, all my business is paid by BACS in full up front before anything goes ahead. Or Google, who pays me 2 months after I've earned it. On a rolling basis. So it is monthly kinda thing. So there's no dodging tax for me with it. And it has caught me out in the past. Ended up with a bill too big and went bump. Folded that company a while ago.

Wondering if this day in age, when so many invoicing systems are setup direct with accounts systems, that can be accessed by various departments of governments. Whether it's a case of never giving a price in writing via a system, and taking cash, or just all honest days work and paying tax all the way.

Now you don't need to reply to the thread. Just vote. And nobody will ever see who voted.

I'm just curious.

I'll do this on all my forums and see what the % is each year near Xmas. Perhaps check annually what's changing.

(Note that if anybody from the tax office ever asked for the data, we don't record who visits a thread, or who has voted. It just adds a digit to a database like an excel file, and doesn't have a name column in it. So they'd just get lots of 1's in lots of boxes and nothing else)

I am a retired design engineer, mainly circuit diagrams for products. I sort out my relatives and neighbours electrical problems without payment.

 

[pirate]

I'm with Tel on this. Using the same analogy, I earned £100 today, less tax. I put some diesel in my car, buy some cigs and a bottle of gin (modern pirates don't drink rum!), so nothing left from my earnings.
I have done this type of calculation many, many times, both when I was a smoker, and after I quit.
The reality is that many people have a tax rate of over 80%...at my peak (!) it was 88% for my earnings and lifestyle...so 88p in every £ went to the tax man. Clearly, no incentive to earn more, if you work extra hard, ruin your work/lifestyle balance to the detriment of your family and your health.
Sadly, if you live in UK (and it's worse in Scotland, btw) you just have to accept this state of affairs.
Just start with your own income tax rate, then add 20% for VAT on everything you buy from already taxed money, then add NI and fuel tax and alcohol tax and insurance premium tax and soon you will be looking at a high actual rate.
I have written here before about the cash/no VAT scam, so I won't bore you with it again. It's usually a scam though, and it only favours the tradesperson.
Wee story to gladden your heart:
Last week a gas engineer called to service the boiler in my daughter's flat..well, actually to give her a Safety Certificate for her tenants. Job done, but he had to arrange to come back 2 days later for other work. He emailed me his invoice, which was £45 + £9 VAT = £54. I met him 2 days later and as I had cash on me I gave him £55 to settle his invoice, just as he was leaving. He didn't check the money, and I wasn't going to ask him for the £1 change! A minute later he rang the doorbell, handed me back a tenner, ie my extra £1 and the £9 VAT...he didn't need to do that, but you can see where this is going...

 

[Markyd]

Of course i pay tax...so that all the scroungers can laugh at me at 6 oclock in the morning when im leaving for work

 

[Dustydazzler]

Of course i pay tax...so that all the scroungers can laugh at me at 6 oclock in the morning when im leaving for work

They won’t be up then , most wont be up much before midday...

 

[Andrew Hunter]

Try this for size, I had a freind (of sorts) who's wife was a "TAXMAN" who only ever pays in cash. He also has a buissness that is predominantly cash, done work at both their house and he's buissness for many years. where do you think all the helfull dodging information came from!

 

[EalingBadger]

when you supply tea and biscuits to your cps assessor, does he declare it to hmrc? and do you claim it as a legitimate business bribe expense?

The VAT people are banned from taking even so much as a cup of tea from you when they come visiting for one of their nice and friendly inspections.

It would seem that HMRC is worried that their inspectors heads will be turned and that they might then "overlook" the postage stamps that you "accidentally" claimed VAT back on last year.

 

[happysteve]

I do quite a few small jobs, mostly domestic. I accept cash on the day, cheque on the day, or (preferably) I invoice after the job by email, and accept direct bank transfer.

Every job, whatever payment, goes through the books.

I'm not VAT registered, sole trader, so accounts (tax return) is relatively simple.

Every job is in my Google calendar. Also Google tracks (roughly) where I go if I don't use satnav, and exactly where I go if I do. There's a digital footprint everywhere I go. If it's for a quote, it's down as such in the calendar. It all matches the mileage I record in the notebook in the van (those little IET Regs notebooks are great for that!)

I keep a manual note of cash/cheque jobs in my notebook, referenced to jobs, and cross-referenced to when I pay them in to the bank.

I do a receipt (cash or cheque) or invoice (bank transfer) for every job, even if it's just a tenner; I always offer a receipt, and even if the customer isn't bothered about one, I do one anyway for my records.

It's a pain paying in the cash/cheques to the bank.

But I sleep very easy at night.

I wouldn't want the option of paying by cash (or cheque) to go away, because some of my customers are in their '80s and '90s, and they don't cope well with anything electronic. I haven't "invested" in a card reader, as I dislike the idea of someone (who isn't HMRC) taking a cut. I dislike the idea that if you take cash for a job, you're automatically assumed to be not declaring it. It's easy: just play it straight.