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  • FIRST POST
    • username678
    • By username678 7th Jul 17, 2:06 PM
    • 11Posts
    • 7Thanks
    username678
    Cash in hand for rented room
    • #1
    • 7th Jul 17, 2:06 PM
    Cash in hand for rented room 7th Jul 17 at 2:06 PM
    Hi everyone, hope someone here can help!

    I have always rented through letting agencies/estate agents but due to a change in circumstances, I am going to rent a room through spare room.

    The landlord seems lovely and the room is fine, but they would like the deposit and all monthly rent money in cash. Is this normal or dodgy? I have always done bank transfers before and feel a bit unsure about walking around with that much cash on me!

    Thanks in advance!
    Last edited by username678; 07-07-2017 at 2:08 PM.
Page 2
    • Guest101
    • By Guest101 7th Jul 17, 4:04 PM
    • 14,637 Posts
    • 14,388 Thanks
    Guest101
    with that sort of sum I guarantee they insist on cash purely to evade tax

    https://www.gov.uk/government/organisations/hm-revenue-customs/contact/reporting-tax-evasion
    Originally posted by 00ec25
    Indeed and it sounds like it's £550 + bills
    • G_M
    • By G_M 7th Jul 17, 4:09 PM
    • 40,617 Posts
    • 46,477 Thanks
    G_M
    Just ask for receipts for each payment and keep them.

    They should specify
    * paid by who, to who
    * amount
    * what for (eg 'security deposit' or 'rent for period 1/7/17-31/7/17')
    * signed by landloed

    then you are covered. It's a hassle drawing out so much cash, but if you want the place and the LL won't budge, then you'll have to agree.

    Or get evicted.

    If it IS a tax dodge (quite likely) that does not affect you - it's betwen the LL and HMRC. You may feel a moral obligation to report to HMRC (see here), but that too might result in eviction in due course........
    Last edited by G_M; 07-07-2017 at 4:11 PM.
    • NinaSwiss
    • By NinaSwiss 7th Jul 17, 4:14 PM
    • 193 Posts
    • 100 Thanks
    NinaSwiss
    as there are you plus at least one other lodger, payment cash in hand is very likely done for tax evasion purposes

    until this year if a LL received more than £354 per month in total from lodger(s), including any share of bills, then the LL would have to pay tax on that income. Perhaps your LL is used to cash in hand for that reason.

    However, from April 2017, the tax free total increased to £625 pcm, but as there are (at least) 2 lodgers, and you say it's a "high rent", it remains possible that the total from all is above that higher limit anyway, so the LL needs to carry on with cash in hand to aid his tax evasion

    if he is evading tax, it has no effect on you living there unless you end up disputing whether you had paid him or not in any given week because obviously there will be no paper trail to show you have.

    Of course morally you may want to report him to HMRC for tax evasion nonetheless?
    Originally posted by 00ec25

    Just wanted to point out for anyone reading the above that the increase to £625 was from April 2016 not April 2017.
    Working towards:
    *House Purchase (2015)
    *Top-up pension (2016) *Clear CC (2016)
    *Mortgage
    Overpayment(50% LTV by Jan 2020) *Clear student Loan(by Jan 2020)*Saving for a Car purchase(2017)!
    *2017 DIY projects *Making the most of life!!!
    • theartfullodger
    • By theartfullodger 7th Jul 17, 4:39 PM
    • 8,831 Posts
    • 11,670 Thanks
    theartfullodger
    As above:

    If (as I suspect) landlord declines to provide receipt then, so that you have some sort of evidence, take out EXACTLY £550 from the bank each month a day or so before it's due.

    This person if on the fiddle: Grass her up, we don't want cheats (or crooks, or bigots,...) in out fair country....
    • cjdavies
    • By cjdavies 7th Jul 17, 4:45 PM
    • 2,433 Posts
    • 2,379 Thanks
    cjdavies
    I'm guessing with that amount you would have to visit an atm each month taking out half the first day and otjer half next day, stuff that, standing order is easier.

    Insisting on cash sounds like dodging tax.
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