Blatantly asking openly to do cash in hand.

[PatienceIs]

Is this the height of stupidity, or just ignorance of the laws?
http://www.gumtree.com/p/jobs/cleanersh ... 1037922265

[section 44]

spam laws?

[PatienceIs]

LOL, spam for brains laws for sure.
Do DWP and HMRC read things like Gumtree?
I guess they read this website (it is one of the best) so I suppose someone may phone her and let her know that she needs to declare income over a certain level.

I recall reading pistonheads where someone posted about their cash in hand work, and very quickly the community tracked his name, address etc. He edited things but people had helpfully screenshotted his bragging.

[section 44]

There's no law against being paid in cash.

[Lambs]

HMRC has already been looking at e-marketplaces; most will be aware that they think that barter is taxable.

But no, taking cash for a job is not in itself wrong. Although HMRC perceives cash-based business to be higher risk.

Regards,

Lambs

[PatienceIs]

Lambs et al.
Is barter taxable?
If I were to fix a neighbours gate, and they change a wheel on my car, is that taxable?
Is there a test available to determine gifting from bartering, like with the employment status indicator?
Thank you for your postings in this forum.

[wamstax]

Barter is a taxable supply if the supply you provide is from the business or trade that you carry on. The question as to whether the amount you give in consideration would be tax deductible would depend on the service received being wholly and exclusively for the purposes of you trade or business.

For example a neighbour carrying on a motor repair business and fixing your car in return for you being a joiner and fixing his business door would be tax neutral. However the same neighbour carrying on a motor repair business and fixing your car in return for you paying for a night out at the theatre for him and his partner should result in him paying tax on the value of the "night out at the theatre".

[PatienceIs]

Wamstax, you have a great ability to explain things simply and interestingly. Thank you so much.