'Would you 'pay in cash' to help people avoid tax?' poll

tombo_2

I don't normally negotiate a cash-in-hand price but make them aware that I will be paying in cash or at least part cash-part cheque as they wish.It's up to them to declare their income to HMRC or not.That way I'm not party to any tax evasion that may take place.

Bluepiper61

If you pay in cash and suspect the person isn't going to pay the tax then you could be considered an accomplice to tax fraud - a criminal offence.

If the tradesman isn't going to pay VAT on the payment then he is hardly likely to pay income tax on it either, so he's making 20% extra there for your 15% saving.

If the government don't get the tax off him then they will have to get the money elsewhere, either through raising taxes or (as is more likely) borrow it and our children will be paying to back, so either way our saving will cost everyone else more.

doberkid42

if i do a job for somebody its the same price whether its cash or cheque i have to pay more to put cash into the bank also if you take cash you can only fritter it away as if you are ever investigated by the tax man you have to account for what you buy

irrelevant

I voted to refuse, although it does depend somewhat on the job in hand. Generally the sort of jobs where it might make a difference, I'm going to want a paper trail - We're in the middle of taking a builder to court because of shoddy work, and it's only because we have all the papers and correspondence that I feel able to do so. As Gareth above said, without that, they could easily turn round and say they never heard of us.

dickietruncheon

MSE_Lawrence wrote: »

Poll started 17 May 2010:

Would you ‘pay in cash’ to help people avoid tax?

If a builder/masseuse/cleaner/plummer/market stall holder or anyone else offered you a 15% discount because “its better in my pocket than in the taxmans”

Which of these is closest to what you’d do?

A. Take it – a saving's a saving
B. Haggle- ask for a bigger discount
C. Refuse it – you won’t take part in tax evasion
D. Report it – report them for tax fraud

NB: I f you can see this note the poll isn't quite ready on the site yet, please check back in 5.

What is a Plummer?

beer_tins

wildthing01 wrote: »

i'm sorry - i don't get this - are you saying that the government knows how much they are losing from cash in hand deals each year and so adjust the national tax rates upwards to take account of this? in the same way shops raise prices to allow for a certain amount of shoplifting? i really hope they don't!! tax is tax isn't it?

and as for the people saying that that £100 has actually cost them £144, well you could make the same arguement for when you buy anything with your hard-earned cash - down to a tube of toothpaste - and in most cases then the government is then taking two lots of tax, once from your paypacket and then again when you purchase something. so i don't really get that arguement either i'm afraid!

No, I'm not saying that. They probably have a rough idea of what they lose every year, though.

What I'm saying is, it costs a certain amount to run the country and provide the various public services. If the government doesn't get enough tax, it will raise everyone's tax rates. That's regardless of what the shortfall is due to. So in effect, some of the tax that normal taxpayers pay is due to the shortfall caused by those not paying, through tax fraud.

Sooler

Why is that mens barber shops always never seem to operate with a till?

Who knows how much cash goes through the shop?

dalore

What is wrong with paying in cash? It is legal tender no?

You're not the one dodging the tax man, he is. If he wants to do so that is his risk. I'll pay my bills cash or cheque, it doesn't matter. It's not illegal for someone to offer a cash discount.

glider3560

dalore wrote: »

What is wrong with paying in cash? It is legal tender no?

You're not the one dodging the tax man, he is. If he wants to do so that is his risk. I'll pay my bills cash or cheque, it doesn't matter. It's not illegal for someone to offer a cash discount.

I agree. In the same way you get a direct debit discount, plumbers/builders/my local takeaway/etc offer cash discounts. Probably because they don't need to go to the bank and pay their fees (or for tax reasons, you don't know). Whatever they get up to with the tax isn't my problem - it is up to the revenue to ensure that tax isn't being evaded, not me.

C_Mababejive

Hang on..as usual we are slandering tradespeople...dont so called professionals also take back handers? What about doctors/consultants and all the rest of them? Lets not assume that they are incorruptible.