According to the law, individuals must declare all the earnings that they make. However, a lot of people, at times, work for ‘cash in hand’.

Apparently, many homeowners tend to opt to pay tradespeople in cash as they may be able to get the price lower. However, by doing this, it can lead to a shortfall in tax revenue of up to £2 billion. It is estimated now that this so called ‘shadow economy’ now makes up 10% of Gross Domestic Product.

People have gone to prison for avoiding paying their taxes. However, a lot of people still do it, and get away with it. One forty two year old who does casual labouring jobs for cash in hand states: “I pay taxes.”

“I pay taxes on my main job, all through the books, all totally legit. And I pay taxes when I spend money, lots of taxes, VAT and what have you. But I will admit that on the side I do some casual work that’s just money in my pocket, beer money, money for the kids, that kind of thing.”

“I don’t feel bad about it, no. I work hard, I do pay taxes and I deserve to keep the extra I earn on top of that if I work extra hours.”

“So no, I don’t think I should even feel bad. Maybe if I paid no taxes at all that wouldn’t be okay, but if I work extra hours then that’s money for me.”

So what do you think? Do you feel that working for cash in hand is acceptable? Let us know in the comments below.


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