Deal for Cash?

[joe-90]

I've got three tax inspector customers - and they all go for cash prices.

It doesn't matter what someone does for a living.

 

[eggplant]

I'm self employed though in IT not DIY, and am forever getting the same type of questions as mentioned on here.
"you can get one for £xx in the local bargain shop" or "such a place charges less" I tell them to go there and come back when (not if) they have problems.
As for doing jobs for cash, is it really worth the chance? I know someone who got hit by the tax man for a cash job, they went through all his bookes and somehow worked out on the basis of this one job, that it would average out to him doing 1 job out of 15 (I think) that he didnt declare, so he owed them a fortune (on the assumption of a 15:1 non declaration) he ended up going bust and is now living happily on the dole lol
Theres one big snag to all this:

If you approach a customer who suggests this type of business transaction you know if you say no, then the next supplier will say yes so what do you do?

A classic case of if you wont - then someone else will....

 

[Thermo]

I've got three tax inspector customers - and they all go for cash prices.

It doesn't matter what someone does for a living.

rather you than me!

Zampa, i have to say my sentiments exactly. You almost feel like putting extra on the job to knock it cak off again. Like you say they expect to be able to knock all the vat off as well when they ask. As i point out to them, even if i did do it for cash ive still got to pay the vat on the materials, so no!

 

[hermes]

If you tool 200 hundred quid for a job be it cash or otherwise and declared it you would pay somthing in the region of approx..25 quid tax nic out of it

Not necessarily true. If some businesses quote £200 all in for a job they will end up paying about £105 of it in taxes, nics etc.

 

[eggplant]

Yeah it depends, then add to that what you pay anually in liability insurance, fuel to and from job, tools, small items used etc, while you can offset some against tax and some vat you can claim back all the small things all add up.

 

[jwilliams]

I received an inspection from the friendly local VAT office recently. One of the first questions I was asked was, "Do you raise a VAT invoice for every transaction?"
After considering that for a few moments, I asked if anyone ever said No. Apparently, you'd be surprised

 

[pickles]

Your an old soldier Zampa

I know a tax inspector who wanted to pay an estate agent in cash to avoid the VAT.

Being an estate agent he agreed.

Most people underestimate the Inland Revenue, it's best not to.

 

[WoodYouLike]

Zampa (and Thermo and eggplant and Hermes and..), exactly my feelings.

 

[Softus]

...working the black economy - just join them. You can't beat them.

Nobody has to do either - the third option is to do what suits you and your circumstances. If you're an honest person, and/or someone who doesn't want the anxiety of wondering whether or not you'll be found out, then you'll do the right thing regardless of anyone else's behaviour.

For example, every penny that I receive goes through my accounts, whether it's a remittance, a credit for faulty component, gratutity, tip, etc. - you name it, it gets declared. Apart from a clear conscience, the main benefit is months worth of work stacked up without any advertising costs.

In answer to the original question, I detest any attempt to knock money off, and I don't tolerate it. Here's an example - last year I missed an appointment, through forgetfulness (and poor diary management), and when this happens (on small jobs) I have a policy of charging half of the labour rate - this recompenses the customer and hurts myself enough to prevent the same mistake in the future. So, the total bill was reduced to £47.50.

Here's the thing - he gave me £47.00 in cash. I looked at him for a moment, silently, and thanked him for the money.

The next time he calls, I'll be too busy.

 

[joe-90]

But you didn't give him a receipt.

 

[corgiman]

here is my tuppence worth

1 the failure to declare income to HMR&C is a criminal offence ergo asking someone to do it for cash is enticement for some to commit an offence that they will be adding and abetting

2 Wooopedoo you save the VAT 17.5% what about the income the tradesman save by not declaring for income tax @ 23% to 32000 and 40% over that, does he knock THAT off

3 if someone is willing to get one over on the government is he really gonna give a monkeys if his work for you aint all that an a plate of chips, or do you think he is honest enough to put right any bad work he does????

4 why do you think its clever to deny schoolling and health etc to everyone else because you dont give a **** about having a good job done and only care that you save a few quid.

5 if tradesmen were honest I read somewhere that we would all save something like 5p in the pound!!!!!!!!!!! so balls to you you git, I pay more tax because of your tightness

6 Finally nothing gives me greater pleasure than turning up to a **** job with a client really really really upset because of said naff job to be told that the bloke who doen it took cash and now has disappered, HA HA HA....

 

[joe-90]

I've never heard of anyone that I know who wouldn't take a cash payment and stuff the government and it's Trident and asylum nonesense.

If you want to say you declare everything - well fine. It's an internet forum where people rarely write about what they really do.

 

[Softus]

But you didn't give him a receipt.

You have no idea whether or not I gave him a receipt, but WTF has it got to do with anything?

I've never heard of anyone that I know who wouldn't take a cash payment and stuff the government and it's Trident and asylum nonesense.

In that case all of your friends, relatives, colleagues and acquaintances are criminals.

If you want to say you declare everything - well fine.

I do, and I will. And it was fine even before you so decreed it.

It's an internet forum where people rarely write about what they really do.

Speak for yourself.