New job but cash in hand

maggiesoup

Hi, after months being unemployed managed to get a job (only 14 hrs per week) with small family run business however, they want to pay me cash each week. I have been given a payslip but there's "0" against Tax and Nat Ins.

Don't want to rock boat too much because its taken me months to find a job and really need the cash, but don't know what to do? Help!

jamieboy

As you are only working 14 hours a week, you probably haven't earned enough to pay tax or NIC.

pb6672

You have to earn £110 / week before you have to pay NI.

Income Tax is slightly more complicated - You can earn £6475 per year (presuming you just have the standard Personal Allowance) before you have to pay any. This works out at £124.51 per week over 52 weeks (though PAYE isn't worked out that simply)

Obviously I don't know your hourly rate, but if your 14 hours returns less than £110 you won't have to pay either NI or Income Tax.

maggiesoup

Whew, this seems to be about right but I think I would prefer to be "on their books" just to keep everything right.

withabix

Being paid 'cash in hand' is of course illegal.

pitkin2020

i would actually say if they have given you a payslip you are probably on the books officially but no harn in checking, then see if you get working tax credits to help bump it up

LittleVoice

withabix wrote: »

Being paid 'cash in hand' is of course illegal.

Receiving cash does not make it illegal.

maggiesoup - did you provide a P45 or sign a P46 when you joined began work for this employer? If not, then how do they know about any tax which should be deducted?

maggiesoup

They haven't asked me for my P45 but I haven't made any money since the start of the new tax year anyway. I'm just wondering if they are using this "cash in hand" thing by way of a trial period. I was thinking of waiting for a month or so and if I feel they are happy with me then asking if they would put me on their books and pay tax but I still don't know if I should actually be paying any tax?

PasturesNew

Cash in hand is completely off the books, unknown to the tax man.

Is it possible you are being paid in cash, but legally? You are getting a payslip, but you don't earn enough for tax/NI to be due. So it might all be legal.

It wasn't that long ago that many people were paid cash weekly... it's just stopped mostly because it's too much effort for people/companies to get the cash out of the bank and count it out into a brown envelope with a payslip. Maybe it doesn 't bother your employer to do it in cash.

MrsE_2

withabix wrote: »

Being paid 'cash in hand' is of course illegal.

I must tell my self employed DH that:D

pitkin2020

i work illegally to as i only except cash from my customers no cheques or cards accepted, no cash no deal.