Cash sales not through the books

[Deleted User]

I'll start off by saying we dont do this. The way the business operates would make it impossible.

However, is this still widespread? I though HMRC had sort of cracked down on this?

Gertie_Walker

HMRC cannot possibly check each traders' accounts - Im sure its as rife as ever it was.

liam8282

There will still be plenty of people doing this.

Just as there are plenty of people than don't pay for their tv licence, don't pay car insurance etc..... the list goes on....

People are not allowed to do it, but they still do and will continue to do so until they are caught, that is if they are caught, and even then they may continue to do so regardless of the consequences.

PlutoinCapricorn

HMRC certainly can't check everyone, but they know very well which types of work have more scope for this than others. Many professions will involve payment via cheque or bank transfer, but taxi drivers, people who do nails etc and anyone else who might be paid in cash will be at the front of the queue for HMRC's attention.

I don't know how people who do withhold income details manage to live with the possibility of an investigation always hanging over them.

antrobus

It is my understanding that certain businesses, for example the sale and distribution of certain prohibited pharmaceutical items, not to mention the provision of some services of a personal nature, are exclusively conducted on a 'cash only off the books' basis, and those engaged in such trades invariably pay no tax whatsoever. So yes, it's still fairly widespead.

paulwf

PlutoinCapricorn wrote: »

HMRC certainly can't check everyone, but they know very well which types of work have more scope for this than others. Many professions will involve payment via cheque or bank transfer, but taxi drivers, people who do nails etc and anyone else who might be paid in cash will be at the front of the queue for HMRC's attention.

I don't know how people who do withhold income details manage to live with the possibility of an investigation always hanging over them.

I bet there are a heck of a lot of cash based businesses where most but not all of the money goes through the books. It'd be almost impossible in practice for HMRC to trace small amounts not being declared.

There must be countless thousands of places where the odd sale doesn't go through the till/books and is used to buy the lunches or after work beers.

Savvy_Sue

antrobus wrote: »

It is my understanding that certain businesses, for example the sale and distribution of certain prohibited pharmaceutical items, not to mention the provision of some services of a personal nature, are exclusively conducted on a 'cash only off the books' basis, and those engaged in such trades invariably pay no tax whatsoever. So yes, it's still fairly widespead.

in fact HMRC seem to want to make life as difficult as possible if you do try to declare your earnings from 'personal services'. No, I don't know this from personal experience but I read something about it somewhere.

dacouch

PlutoinCapricorn wrote: »

HMRC certainly can't check everyone, but they know very well which types of work have more scope for this than others. Many professions will involve payment via cheque or bank transfer, but taxi drivers, people who do nails etc and anyone else who might be paid in cash will be at the front of the queue for HMRC's attention.

I don't know how people who do withhold income details manage to live with the possibility of an investigation always hanging over them.

There are plenty of nail bars who declare more cash takings to hmrc than they actually take over the counter

liam8282

dacouch wrote: »

There are plenty of nail bars who declare more cash takings to hmrc than they actually take over the counter

Declare more than they take? = Money laundering

dacouch

liam8282 wrote: »

Declare more than they take? = Money laundering

Spot on, there are plenty of them that do

antrobus

Savvy_Sue wrote: »

in fact HMRC seem to want to make life as difficult as possible if you do try to declare your earnings from 'personal services'. No, I don't know this from personal experience but I read something about it somewhere.

No, strangely enough HMRC have no moral compunction about such matters. In fact as far as the sex trade is concerned, I recall that the old C&E once went to great lengths to collect VAT from an escort agency.