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Cash in Hand !!

Posted by Les (Les), 10 February 2004
Hi all,
I have just read an advert in our local Newsagents for Cleaners.
It was written on the back of an envelope and offers 6 per hr Cash in Hand. It appears to be from a Cleaning Business.
Just wondered what your thoughts are on the subject, only as far as I am aware it's not illegal as long as the Cleaners are informed that they are responsible for their own Tax and that you will notify the 'Inland Revenue' Cry of all cash payments.
A lady wanted to work for us in the past and she had been doing domestic cleaning for a company who paid her 7 hr C.I.H. She had to sign a bit of paper to say she would pay her own Tax.
All just seems a bit 'iffy to me...
(Oh and the adverts not mine) Grin

Posted by cleaning (Tony C), 10 February 2004
Les,

My understanding, is that the employer is responsible for all employee deductions unless the person doing the work is properly registered as self employed

Tony
Posted by April_Fresh (April_Fresh), 10 February 2004
Hi Les

A person is not self employed untill they have officially registered as such with the Inland Revenue.

As far as I'm aware a contract between you stating they will work on a self employed basis is nil & void until they register.
The person paying their wages be it, Cash, Cheque or Direct bank payment, is responsible for their tax & NI contributions, not to mention H & S, ect.


If only the Inland Revenue made it that easy!!!

Sharon
Posted by Les (Les), 10 February 2004
Thanks for clarifying the legal aspects.
I thought it was something along those lines.
No wonder we get a bad name eh Angry
Posted by andy (andy), 10 February 2004
YOUR WRONG APRIL FRESH!

You can work as self employed before telling the inland revenue. But you must tell them with in 3 months of you being self employed other wise they take you to court with a case they want.

Or you get a big fine.

ANDY!

Go to inland revenue site people, learn how to operate a business! I bet you guys will find new things you didnt know about.
Posted by Les (Les), 10 February 2004
And the debate continues.. Grin
One thing came to mind, why would you want to be 'self employed' to then go and work for someone else at 6 quid an hour Huh
Les Wink
I might give them a call tomorrow and suss them out. Shocked
Posted by catrodney (catrodney), 10 February 2004
Andy,
Why be so aggressive in your reply,the reason most people enjoy using this forum is to bounce ideas and share information,not to bawl each other out !!!

May i point out that you to have given the wrong information!!! Yes if starting a new business one has to inform the inland revenue office within three months failure to do so results in a fine of 100. Non payment of the fine within 30 days results in court proceedings and thats what the IR are taking you to court for not the non registering of business.

Its nice to be important but more important to be NICE.

Cheers,

Tim.





Posted by Ian_G. (Ian_Gourlay), 13 February 2004
A female care home owner in our area was sent to prison for about 9 months for paying her staff partly through the books and extras cash in hand.

She was devestated




Posted by goodhand (goodhand), 14 February 2004
if a self employed person/business was to employ people registered as self employed, and paid them cash im hand how could they account for that in there "books" unless it was invoiced fro by the self employed worker?

i thought subcontracting to a self employed person, would involve the contractor to pay a percentage of tax around 18% and supply the subcontractor with tax vouchers at the end of the financial year.
Posted by Les (Les), 15 February 2004
Last year i had a window cleaner who did the windows, (Obviously) Embarassed for one of our clients, who only wanted us to invoice them directly.
The window cleaner wanted cash for the job,(about 50 notes) for which I asked him to invoice us. He gave me a piece of paper with the briefest of details on it. to cover myself I also completed a petty cash slip and got him to sign it.
In the end I insisted that the client deal with him direct as for the small amount we were able to add to his charge it wasn't worth all the hassle.
The client agreed, but i did larf when they got their 1st 'Invoice'  Roll Eyes from him... I think it was on the back of an envelope and he wanted cash  Shocked payment.
He is still there and I believe he has purchased an invoice book, of sorts. Grin
Any budding accountants out there need a challenge ?
Les Wink


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