Being honest about cash in hand

Fidelio_2

Evening everyone, hope this isn't too off topic...

Basically I have two jobs, one 'official' the other 'unofficial'.

With the number of hours I work I owe tax, but because the official job is below the personal allowance threshold I don't pay any.

On the self-assessment form you can fill in the section about other income, but of course it asks for an explantion.

Could I just put in what I've earned and then put 'Casual work'?

Will there be any further investigations?

Basically I'd rather be honest for one reason or another, but I don't want to get my employer in the !!!!. I know that what they're doing is morally objectionable, but it isn't really up to me at the end of the day.

diable

Think like an MP.......

Cook_County

Fidelio wrote: »

Evening everyone, hope this isn't too off topic...

Basically I have two jobs, one 'official' the other 'unofficial'.

With the number of hours I work I owe tax, but because the official job is below the personal allowance threshold I don't pay any.

On the self-assessment form you can fill in the section about other income, but of course it asks for an explantion.

Could I just put in what I've earned and then put 'Casual work'?

Will there be any further investigations?

Basically I'd rather be honest for one reason or another, but I don't want to get my employer in the !!!!. I know that what they're doing is morally objectionable, but it isn't really up to me at the end of the day.

The evasion of PAYE is a criminal offence in which you say you are conspiring - this does not sound like wise money saving to me.

property.advert

Some people are so up their own backside it is unbelievable. Then again, there is something strange about people posting wanting absolution for tax avoidance.

Like the police, who should be out arresting murderers and rapists, rather than worrying about someone going 33 mph in a 30 limit, the tax people should be focussing on the big picture and not worry about small guys earning a little extra on the side.

patman99

People tend to forget. It is the black economy that keeps this country going. For instance, a man works 40 hours a week and pays Tax and NI. His wages barely cover his out-goings so he does a couple of hours gardening for £20. He then spends £10 of this buying a couple of pints of beer at his local pub.
The pub makes a few quid it wouldn't have done and the taxman makes some money in beer tax.

Nothing wrong in that at all. After all, Te5cos avoid £490m in UK taxes last year thanks to having the majority of their stores registered to a wholy-owned subsiduary in the Caymen Islands and AOL have side-stepped at least £400m by being based in Gibraltar.

TheSavingGuru

If you want to do the right thing and declare the cash in hand you have earned, let your cash in hand employer know and get them to put things right to by asking you to invoice them too for your time you have worked. They will then also be able to mark this as an expense in there accounts. You will then have to pay tax on the money you have earned and your employer won't as your self employed. Least your employer has a chance to put thing right by putting it on the books in some way, otherwise they will get in trouble when you're investigated.

jimmo

If I've got this right you have a tax liability and want to pay that to keep yourself above board.
So far so good, but you don't want to drop your unofficial employer in it.
That is the really difficult bit.
Self Assessment does "exactly what it says on the tin". You self assess and HMRC may, or may not, choose to check what you declare.
If you declare your unofficial earnings you can label them "casual earnings" if you want but you really shouldn't be surprised if HMRC regard casual earnings as a much higher risk factor than an official job.
On the other hand it seems very likely that your unofficial employer is milking much more out of the system than your potential tax liability. Actually he is probably milking more out of you personally by denying you your rights as an employee.
Very importantly, your unofficial employer is flouting HMRC rules in failing to operate PAYE against your wages and, from an HMRC point of view, that is the real crunch. Believe it or not, if you are underpaying tax at the moment it is your unofficial employer's fault rather than yours.
However, one way or another, you are implicated in the fraud that your unofficial employer is committing.
If you can live with the fact that your unofficial employer is fiddling the system and taking all the financial risks that is one thing and if HMRC happen to enquire into it your unofficial employer will face the bill for your unpaid tax.
If your unofficial employer is fiddling the system so much that he is prosecuted for fraud you could end up in the dock with him as an accessory.
If any financial penalties arise from your situation your unofficial employer will have to stump up, not you, but if criminal proceedings are instigated you could find yourself sharing a cell with your unofficial employer.
In practical terms the chances of you doing time are infinitesimal but they do exist.

John_Pierpoint

patman99 wrote: »

People tend to forget. It is the black economy that keeps this country going.

After all, Te5cos avoid £490m in UK taxes last year thanks to having the majority of their stores registered to a wholly-owned subsidiary in the Cayman Islands and AOL have side-stepped at least £400m by being based in Gibraltar.

property.advert wrote: »

Some people are so up their own backside it is unbelievable. Then again, there is something strange about people posting wanting absolution for tax avoidance.

Like the police, who should be out arresting murderers and rapists, rather than worrying about someone going 33 mph in a 30 limit, the tax people should be focussing on the big picture and not worry about small guys earning a little extra on the side.

Evasion?

The reality is that the nation state, in an age of globalisation and overpopulation, is in an increasingly weak position versus the multinational company.
The transnational company, especially one dealing in something intangible like money or software or information etc. can simply move its product somewhere else in the world and raise two fingers.
The unemployables will be left behind, costing a lot in benefits rather than paying a lot in tax.
In the real world it is a power play system.
Senior Civil Servants recognise this reality.
It is a bit like me having a cramped dining room because the local council told me my extension was limited to 3 meters when I wanted 3.5 back into my garden. They tried the same sort of thing with a new drive-in Mc Donalds and us local taxpayers ended up paying tens of thousands of pounds (in addition to what we had already paid the planning department for its work and the legal advice and court fees) when Mc Donalds went to court and sued for costs.

John

PS is not the speeding rule of thumb 10% plus three = 36 MPH (I got done for 36MPH on a bypass that I thought was a 40 MPH limit and it still rankles).

whatyadoinsucka

John_Pierpoint wrote: »

PS is not the speeding rule of thumb 10% plus three = 36 MPH (I got done for 36MPH on a bypass that I thought was a 40 MPH limit and it still rankles).

i always go with 10% plus 2, actually was driving on the m1 at 76 alongside a police car a few weeks ago..

no harm