[Steven Shoreditch]

I read somewhere that if you get paid in cash there's no tax to be paid on it, but if you get paid by cheque or bank transfer you do.

Is this right?

[WinTech]

What planet did that question come from.

Off course its taxable.

[Nick Wareham]

LOL

I think what whoever said that meant was that cash, while taxable, is also untraceable and so if you were so inclined you could just pocket it and not pay tax on that income, though that is illegal.

What I mean is, if you get paid by cheque, there will be a record of it when you pay it into the bank, and therefore the tax man will have a way of checking on it.  Whereas if you get paid in cash, and then rather than pay that cash into the bank you just use it to buy your shopping etc, then theres no way the tax man can ever know you've had it.

Although having said that, if you get investigated and he looks into your affairs etc and it seems that you have earned like £10 a month or something (because all the rest is in undeclred cash) then obviously he's gonna know somethings up and probably stick you with an estimated bill.

If you're gonna do it, the trick is to be clever about it and put just enough through the books so that it looks ok, while at the same time not driving around in a ferrari.

[Helen]

I read somewhere that if you get paid in cash there's no tax to be paid on it, but if you get paid by cheque or bank transfer you do.

Is this right?

can't get my breath for laughing

[Lee GLS]

I think you are all taking this post a little bit to seriously

[Steven Shoreditch]

LOL

I think what whoever said that meant was that cash, while taxable, is also untraceable and so if you were so inclined you could just pocket it and not pay tax on that income, though that is illegal.

What I mean is, if you get paid by cheque, there will be a record of it when you pay it into the bank, and therefore the tax man will have a way of checking on it.  Whereas if you get paid in cash, and then rather than pay that cash into the bank you just use it to buy your shopping etc, then theres no way the tax man can ever know you've had it.

Although having said that, if you get investigated and he looks into your affairs etc and it seems that you have earned like £10 a month or something (because all the rest is in undeclred cash) then obviously he's gonna know somethings up and probably stick you with an estimated bill.

If you're gonna do it, the trick is to be clever about it and put just enough through the books so that it looks ok, while at the same time not driving around in a ferrari.

Thanks for the advice.  My Ferrari is camouflaged as a camper van, however, so that's not likely to be a problem.

[BORBRYCE]

A person with the utmost integrity would pay tax on all their cash earnings. How many of them about though?
I suspect SSWC least of all.

[mlscontractcleaner]

I reckon nobody does; apart from me of course; I'm 100% honest

[Steven Shoreditch]

A person with the utmost integrity would pay tax on all their cash earnings. How many of them about though?
I suspect SSWC least of all.

I think the way I understood it was that you had to declare everything you earned, but that customs and revenue didn't tax on cash as there's no real paperwork to go with that, whereas with cheques etc there is much more work.

[andyM]

What about coins, are they tax free?
Or is it only pound notes that you don't pay tax on? 
And what if the customer pays me in Euros? That must be tax free because the money has come from another country. 
I don't mind Euros but I don't want Indian Rupees. Too many of them to the pound and they fill my pockets up.

[Steven Shoreditch]

Are you an idiot?
 

[Paul Coleman]

It's only tax free if it's from a monopoly game.

[Neil Gornall]

What about coins, are they tax free?
Or is it only pound notes that you don't pay tax on? 
And what if the customer pays me in Euros? That must be tax free because the money has come from another country. 
I don't mind Euros but I don't want Indian Rupees. Too many of them to the pound and they fill my pockets up.

Which century are you in?   

[tacky]

its only tax free .      if you ar on the dole .they ar honest people .they dont have to declare their window cleaning money

[Steven Shoreditch]

Thinking outside the box here, what if you got paid in currency from, say, Bolivia - would you have to declare that?

[NJWindowCleaning]

Yes everything is taxable Cash, Cheques  and Bank Transfer etc. Your Accountant would ask to see your Receipt Book as you suppose to give a Receipt for payments receive from Domestic Customers as for Invoice this is the proof of income cominng into your business.

Your Cash Book should have Cash In on one side and Payments on the other side so if you brought a sandwich you can prove that you spent a bit of income coming into the business so everything is accountable. 

[andyM]

Yes everything is taxable Cash, Cheques  and Bank Transfer etc. Your Accountant would ask to see your Receipt Book as you suppose to give a Receipt for payments receive from Domestic Customers as for Invoice this is the proof of income cominng into your business.

Your Cash Book should have Cash In on one side and Payments on the other side so if you brought a sandwich you can prove that you spent a bit of income coming into the business so everything is accountable. 

So are all sandwiches tax deductable? Or would it depend on whats in it?
I mean I am quite partial to an egg and watercress sandwich but if that was not tax deductable but ham and tomato was I supposse I would have to go for that. 
And what about baguettes?
They must be tax deductable like the euros because they aint english are they? 

[NJWindowCleaning]

Yes everything is taxable Cash, Cheques  and Bank Transfer etc. Your Accountant would ask to see your Receipt Book as you suppose to give a Receipt for payments receive from Domestic Customers as for Invoice this is the proof of income cominng into your business.

Your Cash Book should have Cash In on one side and Payments on the other side so if you brought a sandwich you can prove that you spent a bit of income coming into the business so everything is accountable. 





So are all sandwiches tax deductable? Or would it depend on whats in it?
I mean I am quite partial to an egg and watercress sandwich but if that was not tax deductable but ham and tomato was I supposse I would have to go for that. 
And what about baguettes?
They must be tax deductable like the euros because they aint english are they? 

I was meaning the cash you use to buy the sandwich dope lol and not the sandwich 

[andyM]

Yes everything is taxable Cash, Cheques  and Bank Transfer etc. Your Accountant would ask to see your Receipt Book as you suppose to give a Receipt for payments receive from Domestic Customers as for Invoice this is the proof of income cominng into your business.

Your Cash Book should have Cash In on one side and Payments on the other side so if you brought a sandwich you can prove that you spent a bit of income coming into the business so everything is accountable. 

Ok thanks for clarifying that.
But what about baguettes? Or are they a "grey area" where the tax man is concerned? 




So are all sandwiches tax deductable? Or would it depend on whats in it?
I mean I am quite partial to an egg and watercress sandwich but if that was not tax deductable but ham and tomato was I supposse I would have to go for that. 
And what about baguettes?
They must be tax deductable like the euros because they aint english are they? 

I was meaning the cash you use to buy the sandwich dope lol and not the sandwich 

[christopher b]

if you handle a lot of cash you might as well have a HMRC target on your back.