cash payment from builder with no deduction??

[egginyourface]

A friend of a friend said that there builder is paying him cash for work.

What my mate wants to know is what does he do in this situation?

The money has to go into the bank and he wants to pay his taxes otherwise you cant buy a house etc?

I told him 20% should be deducted at source but this is obviously not the case


Whats your opinion

 

[keniff]

Just put 20 percent away for the tax return, if he signed up for cis then the builder can deduct the 20 percent for him

 

[Guest123]

Nothing wrong with being paid in cash providing it all tallys up. If he does pay it in, tell him to keep 20% safe for the nasty man as he would do with any other payments.


Is your mate CIS???

 

[egginyourface]

but the builder isnt paying any tax...

 

[telectrix]

as long as he is invoicing the builder and doing his tax returns, pay the class I NI. .....

 

[egginyourface]

theres no invoices passing hands

 

[Guest123]

theres no invoices passing hands

Tell your mate, if he wants to be legit to stay away from this chancer in future then. Everyone else has to pay their taxes why shouldn't he.

 

[keniff]

I would do an invoice even if the builder doesnt want to take it for his own records, if any of the work is notifiable there's a paper trace and will always bite you in the bum. Just pay the tax and stay legit!

 

[egginyourface]

True. My friends a carpenter so he doesn't issue certs. Im paid in cash sometimes so i just make an invoice out to customer rather than builder

 

[pjcomp]

Presumably you produce a copy invoice for your own records, so produce that as usual, bank the cash (with the tax set aside as everyone says), then when your books get checked by an accoutnant or a tax man, you're all clean and white. The builder's accounts are down to him.

PJ

 

[hasel5]

Builders paying cash sounds good to me

 

[Dan23584]

I do work for a builder who always pays cash, I do exactly as the other have said and give him an invoice anyway, what he does with this I don't care all that matters is I have a paper trail to tie in with my moneys!