Advice for man who has worked on the black for 20 years

confuseddaughter_2

marliepanda wrote: »

No pension, and he will owe HMRC a lot of money...

Yes no pension, but Pension Credit will pay him more than what his pension would have been.
Only if they find out which is highly unlikely given the industry he was/is in. The 'Black Stuff' encouraged many men to work cash in hand with names like Mickey Mouse.

The worst culprits aren't those 'on the Black Stuff' but the 'self employed' muckaway driver/operator. London and Manchester are rife with them.

His major problem would come if he had amassed assets bought out of that money - he wouldn't be able to account for them. Best way in that line of work is to spend the lot each week IN CASH, on general living, holidays etc - something that could never be normally checked. That's what my ex did. He worked the winter/spring and we travelled the summer/Autumn spending it.

confuseddaughter_2

blondebubbles wrote: »

If he does tell the JCP that he has been working and not declaring it they can report it to HMRC.

And of course he will be that daft to do that?

confuseddaughter_2

blondebubbles wrote: »

Doesn't mean that he won't.

Ok if he is that daft I suppose. But any normal person wouldn't would they?


In cases like this especially when dealing with the DWP and HMRC, it is often wiser to say nothing about anything.

Jobseeeker

HappyMJ wrote: »

Nothing wrong with working cash in hand as long as he's registered self employed and paying tax and NI contributions on it.

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"Cash in hand" means not paying tax or national insurance. That's the whole point of the thread, the OP is asking what his lodger will do in retirement as he will have no pension

BigAunty

confuseddaughter wrote: »

Yes no pension, but Pension Credit will pay him more than what his pension would have been.
.

Isn't pension credit getting scrapped under the move to the £144 proposed pension which now requires claimants to have paid 35 years of NI contributions? It's worth the OPs lodger doing some research in this area to see if it affects him. This is because the news articles I read seemed to indicate that someone who didn't pay the full years would get a proportional drop in pension. I believe that it's possible to pay missing voluntary contributions back for the past 6 years at modest cost.

Also, the problem with him working in the black economy is he may have been eligible for housing benefit during periods of low income, made harder for HB claimants who have periods of free accommodation who then try to claim, as the council may argue that it shows no liability to pay rent, hence no entitlement to HB.

prowla

Since the government is taking a stand against tax evasion they would just love to have someone turn up who has never paid tax.

He'll need to have his story right and be well primed for the JC interviews.

BillJones

Advice? Tell him to fatten up, and buy a jumper and hat, as he's going to be cold and hungry for whatever years he has left.

pearl123

marliepanda wrote: »

No pension, and he will owe HMRC a lot of money...

It makes no difference, whether he paid in or not. He'll get benefits now if he applied and will get pension credit later regardless of what he has put in. Even if that is zilch.


I happen to know someone who was in a similar position.

BigAunty

pearl123 wrote: »

It makes no difference, whether he paid in or not. He'll get benefits now if he applied and will get pension credit later regardless of what he has put in. Even if that is zilch.


I happen to know someone who was in a similar position.

Look, I flagged up an issue with this assumption that the OPs lodger would automatically get pension credit. It is being phased out, as I reported before. It needs more research rather than complacency.I've done some digging. What I haven't found is how the govt plan to deal with hardship resulting from the scrapping of PC for those who get no or partial pensions.

• you'll need to make NI contributions for at least 10 years to qualify for anything (compared to the 1 year you need currently) and this will only entitle you to £41 a week

• you'll need to build 35 years' National Insurance contributions before you qualify for the full state pension (it's currently only 30 years)

• means-tested pension credit... will be stopped
• The new state pension will be worth £4.11 per week / £213.72 per full year (subject to inflation) for each year you paid National Insurance.

http://www.money.co.uk/article/1009534-the-flat-rate-state-pension-faq.htm

I can't see how a government can completely withdraw PC (or a PC type replacement top-up for those who have paid hardly any stamp and will get a tiny state pension and therefore have sub-poverty incomes. I can see why they may have made this change - recent immigrants used to be able to get full state pensions but now need to have paid in at least 10 years stamp.

NYM

As the OP's lodger is only 50 surely he has a few years to go before he reaches retirement age and could get NI contributions paid if he draws some JSA/benefits until he finds legitimate work ?