In a bid to bring in £3.5 billion more in tax every year, cash in hand payments could soon be banned!
According to the Spring Statement, which was issued yesterday, large cash payments could be banned in order to try and crackdown on the black economy. Ensuring workers pay the full amount of tax necessary for the work they have completed.
Alongside the ban, suggestions were also made stating that receipts may be made compulsory across the country too. This would then require tradespeople to record any payments that they receive.
These suggestions have been introduced with the idea that tradespeople will be unable to dodge the tax they need to pay on their work.
The Daily Mail reported that it is common for tradespeople to use cash as a way of offering homeowners a cheaper deal. Of course, a cheaper deal is music to a homeowner’s ears. Who doesn’t want to save a few extra quid? But, tradespeople are also benefitting from this in terms of tax.
This isn’t the first time this ban has been suggested though. Cash in hand has been debated for a long time. Take a look at another report on this here.
Back in 2015, former shadow chancellor Ed Balls declared that he believed that people should get a written receipt for all transactions they make. He came under a great deal of fire for suggesting this though. But, he argued back stating that it was the “right thing to do”.
And now, the Treasury are considering changes. Following the suit of other countries, the UK is debating the introduction of a maximum limit on cash payments.
For example, countries such as France, Spain and Belgium all have limits of £13,000. This is in order to try and prevent people moving big sums of cash without being noticed.
However, business experts have warned that measures cannot be launched if it means innocent businesses, who are not using cash to dodge tax, cannot use cash when needed.
So what do you think of this? Let us know in the comments below.