Self employed, paying my mate cash?

frub5

Hi,
Sorry for the rubbish title.
Basically my self employed husband is working on a job that he needs a painter for, he knows of a guy who is willing to help, the only problem is he apparently doesn't have a bank account. The client is happy to pay my husband the full amount by bacs and my husband could take the cash out of the bank to give to the painter.
I.e.: £1800 goes into hubby account on Friday, Friday afternoon £800 cash is taken from the account and given to the painter.
I'm pretty sure there would be some tax implications? This job would last approx 3 weeks.
What's the best way to go about it without getting into trouble?
Thankyou in advance

comeandgo

Get the client to pay the cash direct to the painter. There is no reason not to pay cash as long as there are invoices to support payment.
If your husband takes the payment then he is acting as main contractor with painter as subcontractor so any payment made by husband would need to have HMRC agreement and a CIS tax adjustment.

Tammykitty

Technically this probably comes under the CIS scheme
https://www.gov.uk/government/publications/construction-industry-scheme-cis-340/construction-industry-scheme-a-guide-for-contractors-and-subcontractors-cis-340


You husband is the contractor, and should be deducting tax before paying the friend

somethingcorporate

Must be tricky to not have a bank account...