On 24/07/2012 11:45, David WE Roberts wrote:

"Nemo" wrote in message
...
Quote
Paying a plumber cash in hand is "morally wrong" because it denies the
revenue vital funds, a Treasury minister said as the government
outlined new ways of cutting down on £5bn in tax avoidance.

David Gauke, the exchequer secretary to the Treasury, risked shining a
spotlight on whether any of his government colleagues have ever made
cash in hand payments to plumbers when he described the practice as a
large part of Britain's "hidden economy".
Unquote

http://www.guardian.co.uk/politics/2...dspending-hmrc

Trades poeple operate to current moral norms, as displayed by
bankers, politicians, journalists, entertainers, pro footballers etc.
Is that news?

Paying cash is not necessarily 'bent' - AFAIK unlike consumer bank
accounts, business bank accounts charge per transaction so there is a
cost in putting a cheque through the bank.

Indeed... also what has how has the recipients tax affairs got anything
to do with the person paying the bill?

As long as you get a valid receipt (VAT receipt where applicable) then
paying some of the bills with cash which is then recycled by the
tradesperson on every day expenditure is in no way wrong.

Not only that, what are the alternatives? They can either take a cheque
at a huge risk of not getting paid, or they can shell out hundreds a
quarter to their bank for card payment facilities and a merchant account.

Obviously the suggestion by the consumer to the tradesperson that they
"Pay cash, nudge, nudge, wink, wink, no names no pack drill no VAT and
no income tax" is encouraging the tradesperson to contrave the taxation
laws.
At least we are not as paranoid as some Nordic countries where tax
is/was so high that people went to a cashless economy and traded skills;
"You mend my car and I'll paint your house" and similar. Whereupon they
changed the law so that you had to declare all services done for other
people regardless of if you were paid or not.

That is already the case here... or at least HMRC would have you
believe. If you "give away" a service that you would normally derive
income from, they still expect you to pay the tax on the notional value!

Makes casual sex a finacially risky proposition.
A charity f*ck should now appear on your income tax form.
Please, not in this country!

Cheers

Dave R


--
Cheers,

John.

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