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Cash in hand for rented room

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  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    edited 7 July 2017 at 4:11PM
    Just ask for receipts for each payment and keep them.

    They should specify
    * paid by who, to who
    * amount
    * what for (eg 'security deposit' or 'rent for period 1/7/17-31/7/17')
    * signed by landloed

    then you are covered. It's a hassle drawing out so much cash, but if you want the place and the LL won't budge, then you'll have to agree.

    Or get evicted.

    If it IS a tax dodge (quite likely) that does not affect you - it's betwen the LL and HMRC. You may feel a moral obligation to report to HMRC (see here), but that too might result in eviction in due course........
  • NinaSwiss
    NinaSwiss Posts: 278 Forumite
    Part of the Furniture Combo Breaker
    00ec25 wrote: »
    as there are you plus at least one other lodger, payment cash in hand is very likely done for tax evasion purposes

    until this year if a LL received more than £354 per month in total from lodger(s), including any share of bills, then the LL would have to pay tax on that income. Perhaps your LL is used to cash in hand for that reason.

    However, from April 2017, the tax free total increased to £625 pcm, but as there are (at least) 2 lodgers, and you say it's a "high rent", it remains possible that the total from all is above that higher limit anyway, so the LL needs to carry on with cash in hand to aid his tax evasion

    if he is evading tax, it has no effect on you living there unless you end up disputing whether you had paid him or not in any given week because obviously there will be no paper trail to show you have.

    Of course morally you may want to report him to HMRC for tax evasion nonetheless?


    Just wanted to point out for anyone reading the above that the increase to £625 was from April 2016 not April 2017.
    Working towards:
    [STRIKE]*House Purchase (2015)[/STRIKE]
    [STRIKE] *Top-up pension (2016)[/STRIKE] [STRIKE] *Clear CC (2016) [/STRIKE]
    *Mortgage
    Overpayment (50% LTV by Jan 2020) *Clear student Loan(by Jan 2020)[STRIKE]*Save for a Car (2017)![/STRIKE]
    *Making the most of life!!!
  • theartfullodger
    theartfullodger Posts: 15,703 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    As above:

    If (as I suspect) landlord declines to provide receipt then, so that you have some sort of evidence, take out EXACTLY £550 from the bank each month a day or so before it's due.

    This person if on the fiddle: Grass her up, we don't want cheats (or crooks, or bigots,...) in out fair country....
  • Marvel1
    Marvel1 Posts: 7,436 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    I'm guessing with that amount you would have to visit an atm each month taking out half the first day and otjer half next day, stuff that, standing order is easier.

    Insisting on cash sounds like dodging tax.
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