[Les]

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' 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)

[cleaning]

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

[April_Fresh]

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

[Les]

Thanks for clarifying the legal aspects.
I thought it was something along those lines.
No wonder we get a bad name eh

[andy]

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.

[Les]

And the debate continues..
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
Les
I might give them a call tomorrow and suss them out.

[Ian Gourlay]

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

[goodhand]

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.

[Les]

Last year i had a window cleaner who did the windows, (Obviously) 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'  : from him... I think it was on the back of an envelope and he wanted cash   payment.
He is still there and I believe he has purchased an invoice book, of sorts.
Any budding accountants out there need a challenge ?
Les