Do companies pay cash in hand if you ask them?

Question

Say you offered to work for free & what they were giving you was classed as personal gift- would you have to pay tax then? about £1500 per month

Answer 1

If you were working a couple of hours on a saturday say for £20 cash in hand then probably, but no valid company will pay £1500 per month with nothing noted down on paper to do with tax, etc.  

Also you want to be weary of doing this, as you would struggle if you needed financial assistance and benefits etc in the future.

Paying Tax sucks-but we all have to pay it.

Answer 2

No. You don't have to pay taxes in a case such as this. But you'll probably have to spend the money you save from not paying taxes on a good criminal attorney.

Answer 3

When I first started my business I used to pay a lot of my blokes cash at the end of each day. Can't do it now, busness has grown and accounts have to be straight (shame really I like dealing with cash and my blokes like it).

Answer 4

In UK, it's YOU that has to pay Income Tax .. yes, 'normally'  your Employer deducts Tax before paying your wages (PAYE), HOWEVER, in the event that Tax is not deducted correctly, it is YOU that is liable for the payments, NOT the Employer.

It is quite possible that the Employer is putting your wages 'through the books' ... when HMRC comes knocking they may well claim that you told them you wished to work as an 'Independent Self-Employed Contractor' ... they will get a slap on the wrist for being gullible  .. you, on the other hand, will end up with a massive back-Tax and penalties charge ..

NB. Gifts are Taxable as 'unearned income' .. look it up

Answer 5

If it looks like a duck, walks like a duck, quacks like a duck . . .  It's a duck.  

Answer 6

Yep. You are liable for tax and NHS contributions. Just pray you don't have an accident while working there, and that their accountant or Tax officer doesn't spot what they are doing.

Answer 7

There is no benefit to the company in this arrangement because they would have to pay income tax on the extra profit they would appear to be making by not declaring your wages as a valid business expense.

You would also be guilty of fraud for not declaring your earnings and then the rest of us honest tax payers would have to pay even more tax to keep all the single parents, absent fathers and their offspring (who are possibly doing what you are suggesting here) so that their kids can all have every computer game, flash chavvy trainers and hoodies and luxury going whilst the workers struggle to get by!!!  Get my point?

Answer 8

I dont think any company would do that apart from a dodgy one!!!

Answer 9

Even that gift would be taxable.

BUT, the employer would have to pay tax on the amount as income in his business, if he did not, could not, deduct it as a labor expense.

There are situations like this.

Cash only businesses where an employee is paid cash, under the table, and the owner does not claim all cash income.

Bear in mind.  You will not have any retirement income such as SS in US.  

When you do retire, someone will ask, "Did you not ever work?  How did you support yourself?  Did you ever earn any wages?  Did you not pay any taxes and retirement?"

We all have to pay our share for, public services, roads, rain drainage for flood prevention, street lights, police and military protection, Fire departments, etc, etc, etc.

Answer 10

No. And you have to declare all your income, whether it's called a 'gift' or not.

Answer 11

Idiotic question. They give you 1,500 per month. You work there.  Then it is transparently obvious you are NOT working for free.  Who would class the money as a 'personal gift'????? NOT HM Customs and Revenue, that's for d**n sure....

Edit: the same remains true even if you work for your family.  You might (and I stress 'might') be able to offset the amount you are legally allowed to receive as a gift each year tax free (it's about 3 grand) BUT that would then mean that the balance would be seen as your pay for work done.  And I suspect that HMC and R would still be tempted to take the line that they would have to be convinced that you would have received the 'gift' even if you had NOT done a stroke of work.