Offered a job, it's perfect for me but employers want to pay cash in hand.

MListin

I've found a job that is perfect for me, during school hours and the right amount of hours so that I can claim working tax credits and still be entitled to other benefits.
I've been unemployed and struggling for a while so I'm very excited about this opportunity.

My problem is the employers have said they can't to pay me "cash in hand".
I'm really not very knowledgeable of this, can I be paid cash in hand and still declare it to HMRC and the job centre?

I am desperate to get off JSA and get back into work, but I need the working tax credits to get by so can't just cancel the has claim and work for cash in hand.

I'm happy to do it as long as I can still declare it and be entitled to the working tax credits.

Does anyone know where I stand?

Thanks.

marcarm

Is it cash in hand off the books with no tax paid etc, or is it paid in cash with all the relevant procedures and deductions made?

A lot of people think that paying in cash is wrong and not above board where if done correctly it is the same as being paid into your account.

Make sure you have the right end of the stick before making any decisions.

Guest101

Loads of cash businesses, especially with weekly pay cycles, pay cash.






Need more info on whether they mean 'cash in hand, under the table, nudge nudge wink wink' or simply 'we're a predominately cash business'

Proxima_Centauri

If you'll still be getting a pay slip then it should be ok.

stator

Sounds dodgey.
Payment by cash is not a problem but when someone says 'cash in hand' it usually means without paperwork too.
Employer's have to pay national insurance for employees, so if they're not paying it you're illegal.
If they don't want the hassle of employing someone they'll have to pay an agency or umbrella company and you can pay all the employment taxes out of your income, but that is a lot more than you might expect so your pay would be hit.

MListin

I assume he meant off the books.
He made a comment "with it only being 16 hours and just over £100 a week it'll be easier all round if I just pay you cash in hand"
Which makes me think he meant setting up all official procedures and things would be a lot of effort for 'only' 16 hours.

How much is tax/ni when you work 16 hours for minimum wage?
Is there an online calculator I can use to work it out?
Could I contact HMRC and arrange to pay it myself?

marcarm

MListin wrote: »

I assume he meant off the books.
He made a comment "with it only being 16 hours and just over £100 a week it'll be easier all round if I just pay you cash in hand"
Which makes me think he meant setting up all official procedures and things would be a lot of effort for 'only' 16 hours.

How much is tax/ni when you work 16 hours for minimum wage?
Is there an online calculator I can use to work it out?
Could I contact HMRC and arrange to pay it myself?

If that is too much effort, where else is he cutting corners? Health and safety? Insurance etc etc.

But of course you have met them and can see for yourself.

There should be any tax to pay on £100 a week, someone else will be able to advise about the ni and what you can do about paying it yourself.

suki1964

MListin wrote: »

I assume he meant off the books.
He made a comment "with it only being 16 hours and just over £100 a week it'll be easier all round if I just pay you cash in hand"
Which makes me think he meant setting up all official procedures and things would be a lot of effort for 'only' 16 hours.

How much is tax/ni when you work 16 hours for minimum wage?
Is there an online calculator I can use to work it out?
Could I contact HMRC and arrange to pay it myself?

For that you need to be registered as self employed , which you can not be if you are only working to the one company and they supply everything you need for you to do your job

There is no tax to pay on those hours unless you have other income coming in that brings you to the tax threshold. There is also no NI to be paid

As you are still able to claim some benefits, tell him you will give him your bank details and NI number so he can't get it sorted so as you aren't left open to an accusation of fraud

MListin

I will have a chat with him tomorrow when I go down there for a trial day.

The job is in a little shop that makes craft type items, it's been open for a couple of years and is doing well so they have advertised to take someone on three days a week.
They have never employed anyone before, only the owner and his wife have ever worked there and it was their first business.

I wonder if they looked into setting up a paye system (I think that's what it's called, I've been googling) and all of the official procedures and regulations and maybe thought it seemed like a lot of work.

This will be my only job/income.

I might take a look at what they would need to do to register me as an employee, maybe if I can show them it isn't complicated and won't cost them any more they will reconsider doing it.

Thank you.

TELLIT01

Is 16 hours per week enough to qualify for WTC? I thought the required hours were more than that now.

agrinnall

TELLIT01 wrote: »

Is 16 hours per week enough to qualify for WTC? I thought the required hours were more than that now.

It depends on the claimant's circumstances, for some it will be 16 hours, for others it can be 24 or 30.

https://www.gov.uk/working-tax-credit/eligibility