FAO self employed people

Eh? He's responding to RedHelen saying if you pay someone in cash then you have some responsibility too. His first three words are Yes you have.

 

I wasn't saying that it did. Its totally wrong to accept their dodgy deal and is similar really to buying something that you know is stolen off a guy in the pub. All I was trying to say was that a householder doing something wrong is wrong but that doesn't lower the blame on the tradesman.

In other words it doesn't mean that the tradesman is only 50% guilty and the home owner is 50% guilty. Its a case that they're both 100% guilty. I just didn't explain it the best

 

agreed, I was trying to say that too

 

There is nothing illegal in paying a tradesman cash. The onus is 100% on the tradesman to keep appropriate records and pay the necessary taxes, etc. That's part of the problem.

If customers were also legally liable for acting outside the tax system, it might be a deterrent. At the moment, the only risk is a cowboy job with no comeback, which sadly far too many people seem happy to accept.

 

There is if you pay less if you pay cash.

 

"Holly Heath, a solicitor from DAS Law, answers our reader's questions and more:

Are you breaking the law by paying cash in hand, and what are the consequences?

The position with any trader is that they are responsible for declaring any cash paid work/income received to HMRC.

There are no legal implications for either party to pay in cash for work, or offering a discount for paying in cash in order to avoid administration/banking charges.

However, this does not negate the trader’s obligations to declare the services and cash received to HMRC for TAX purposes.

The onus of declaration to HMRC will always fall on the trader. HMRC could potentially argue that you are aiding and abetting the crime, although proving this would be difficult."

 

It's also illegal to not declare all your income.

They still do it.

 

Whether it's illegal or not, I won't use a tradesman that charges less for cash in hand.

If they prefer cash, I will use them, but will always pay by bank transfer.

I had a guy a few months ago, we had some work done that needed scaffolding, ended up costing about 10k. He wanted cash. I told him I refuse to go and collect 10k in cash and have that on my person for any amount of time.

 

Completely agree. I was just illustrating that too many people are happy to pay cash because, as well as saving a bob or two, they don't face any legal comeback.

I know there are issues to overcome, but there are some clear benefits to becoming a cashless society.

 

80% of average monthly profit over the last 3 years, up to 2,500. Just announced.

Available to anyone with trading profits up to £50,000 and anyone with a tax return from 2019.

Will be available no later than the start of June as a grant. Will be contacted by HMRC directly.

I hope June is not too late, but I don't envy them having to come up with a new system.

Doesn't mention backdating it yet, but I would assume backdated to 1st March

 

Just leaves us agency workers now and zero hour contract workers now!

 

I thought they’d covered zero hrs contracts on the first 80% as they were including everyone on PAYE.

 

Im not sure universal credit (if this is the route u have to take) does back date...u have to sign to agree to that to get monies in the first place.

 

This is a new scheme. Confirmed now that it will be backdated to 1st March. So 3 months of payments will be given out in June.

 

Dont think they did.

 

Just announced 80% of profit up to a ceiling of £2,500 pcm.

 

They did, furloughed zero hour contract workers are covered under the employment scheme

 

Average monthly profit.
Is that gross profit, ie turnover income less expenses, or net profit, ie gross profit less personal allowance?
There's a big difference.
For example, if my gross profit is 12000 and my personal allowance is 12000 then my net profit is nil.
Is the 80% based on 12000 gross or zero net?

 

I would imagine gross, but I could be wrong. I'm sure guidance will be published later tonight.