Cash in hand receipt

JulieClot

Hello,
I'm self employed, filed a tax return last year etc.
Basically, a guy did some work for me.
He charged £2000.
He wants cash in hand payment only.

I said I would do it but need to make a receipt of payment... How can I do this?
How official does the receipt need to look? In case HMRC want to check my accounts etc.

oldbikebloke

are you in the building trade? If yes, then tread careful because there is a reason that trade gets close attention

if not, then (if, big if, inspected) your business records (bank payments) are required to contain sufficient details to enable HMRC to precisely identify the person committing tax evasion so they can do him, (and possibly put you in a position of looking like potential collusion since you agreed to pay cash in hand without having any evidence of who you paid: name, address, trading name, etc)

TheCyclingProgrammer

You could just say to them - no payment without a receipt, but beware - there might have been an implicit "understanding" that the price quoted was "for cash" because they were not going to report the income to evade tax. Expect some push-back against a receipt if that's the case. 

sheramber

 
It is him who should be making the receipt or giving you a bill which he can add a receipt of payment to. 
  
 Can you draft something with his trading details on it- name, address, telephone number etc  and   details of the job done.
received from xxx( your name)  the sum of £2000  as full and final payment of the above.
   He needs to sign it and date it. 

 

01afraser4

JulieClot said:

Hello,
I'm self employed, filed a tax return last year etc.
Basically, a guy did some work for me.
He charged £2000.
He wants cash in hand payment only.

I said I would do it but need to make a receipt of payment... How can I do this?
How official does the receipt need to look? In case HMRC want to check my accounts etc.

If he has provided you with an invoice for the work that should be sufficient evidence of you incurring the expense should this be queried by HMRC, on the assumption that the invoice contains enough relevant information as mentioned above (Name, address, details of work carried out etc.).

Pennywise

If you/they are liable for the HMRC construction industry scheme, you have to report the transaction and deduct tax from it.