davieG Posted 24 July 2012 Posted 24 July 2012 BBC - Full Report - http://www.bbc.co.uk/news/uk-18964640 Treasury minister David Gauke has said it is "morally wrong" to pay tradesmen such as plumbers, builders and cleaners in cash in the hope of avoiding tax. He argued the practice came at "a big cost" to the Treasury and meant other people had to pay more. But Treasury sources stressed Mr Gauke was answering a specific question rather than proposing a policy change. Labour said the government should be focusing on "clamping down" on "large-scale tax avoidance". Asked if he ever had paid cash to tradesmen to reduce his costs, London Mayor Boris Johnson said: "I've certainly paid a lot of cash in hand." In response to the same question, Local Government secretary Eric Pickles said: "Certainly not." The government is estimated to lose about £2bn each year to the black economy as tradesmen fail to pay VAT or income tax by not declaring payments and keeping them "off the books". Mr Gauke told BBC Two's Newsnight there was nothing wrong with paying in cash, but doing so actively to avoid tax was wrong. 'No alternative' Mr Gauke said: "When a tradesman says, 'Here's a 10%, a 20% discount on your bill if you pay me cash in hand' that is facilitating the hidden economy. That's as big a problem in terms of loss to the Exchequer as tax avoidance. Revenue is not being paid as it should be paid."
MattyFromLE Posted 24 July 2012 Posted 24 July 2012 Isn't his Mrs a "Tax Avoidance Advisor"? I'm not massively into politics etc, but this double standards with tax is absolutely disgusting. My girlfriends WHOLE wage packet got taxed off of her 6 months ago without any warning at all, she still hasn't been given it back. Gauke rambled on about doshing a sparky a note as though its our fault the country is in the state it is in. Hypocrite, is just not strong enough.
purpleronnie Posted 24 July 2012 Posted 24 July 2012 I agree why should they get away with paying tax?
Smudge Posted 24 July 2012 Posted 24 July 2012 It's not the responsibility of the buyer to protect the Treasury from tax evasion. It's up to the tradesman to decide whether he declares it or not.
Dr The Singh Posted 24 July 2012 Posted 24 July 2012 The consumer is hitting tough times, one can understand why they would want to lower there costs. But it is ilegal and hence we must respect the law!!!
I am Rod Hull Posted 24 July 2012 Posted 24 July 2012 I`v done cash in hand jobs and i`v payed cash in hand, I feel so ashamed....
Captain... Posted 24 July 2012 Posted 24 July 2012 It's not the responsibility of the buyer to protect the Treasury from tax evasion. It's up to the tradesman to decide whether he declares it or not. This, the only time it should ever be on the consumer is if they expressly know they are getting a cheaper rate for paying cash in hand, because the tradesman avoids paying tax, or if it is for a large amount of money, then it is a bit dodgy, but how do you pay a cleaner if you don't pay cash in hand, I suppose you could leave a cheque, or do a bank transfer, but even then you have no guarantee it is going to be taxed. Just more guff from the brain trust running our country.
glenny_fox Posted 24 July 2012 Posted 24 July 2012 Anybody who says they wouldn't do it if they have got the chance is lying. It may be morally wrong, but needs must and all that. I have no respect for anybody in politics going on about 'Morally wrong' things, when for years they were claiming expenses for everything, taking money out of the coffers. As MattyfromLE says, hypocryte is not the word.
Finnegan Posted 24 July 2012 Posted 24 July 2012 It's not the responsibility of the buyer to protect the Treasury from tax evasion. It's up to the tradesman to decide whether he declares it or not. Exactly this. I do agree that it should be the major cases of tax evasion from those wealthy enough to be contributing serious taxes but that doesn't mean a tradesman should be diddling the state for gas. Still not the responsibility of a customer, though. Stupid comment.
Rincewind Posted 24 July 2012 Posted 24 July 2012 No doubt it is done by many others in all walks of life. For instance somebody on a business trip slips a receptionis at a top hotel a tenner and registers for the night then goes and stays in the B & B across the road. Pays 100 quid less and puts the hotel bill on his expense account. How many times has that been done? On the other hand a bloke on JSA cleans a couple ofwindows for an elderly widow next door is given a fiver and a cup of tea and next time he signs on is told his payments are suspended because a spy saw him up a ladder working. Next day in the Daily %^&* there is a huge headline 'Benefit cheat sets up lucrative window cleaning round whilst claiming £1000 per week in benefits. Why he would want to do a window cleaning job if getting £1000 PW is not explained.
davieG Posted 24 July 2012 Author Posted 24 July 2012 I usually say what's your best price and then add how do you want to be paid, cash, cheque or card. As an aside cheques aren't guaranteed any more are they and how many small tradespeople can administer cards. Seems to me the best and most guaranteed choice for a trades-person is cash whether they're paying their taxes or not. I did have a guy who dug out out my front garden make use of the local road worker and their digger, not sure what the arrangements were but I guess highly suspect. In mitigation I didn't realise until I passed him by working on the road round the corner which was obviously after the job was done.
davieG Posted 24 July 2012 Author Posted 24 July 2012 No doubt it is done by many others in all walks of life. For instance somebody on a business trip slips a receptionis at a top hotel a tenner and registers for the night then goes and stays in the B & B across the road. Pays 100 quid less and puts the hotel bill on his expense account. How many times has that been done? On the other hand a bloke on JSA cleans a couple ofwindows for an elderly widow next door is given a fiver and a cup of tea and next time he signs on is told his payments are suspended because a spy saw him up a ladder working. Next day in the Daily %^&* there is a huge headline 'Benefit cheat sets up lucrative window cleaning round whilst claiming £1000 per week in benefits. Why he would want to do a window cleaning job if getting £1000 PW is not explained. So you got away with the first scam and not the second
Webbo Posted 24 July 2012 Posted 24 July 2012 As I understand this he was asked a question to which he gave his honest opinion, from which he's been called a hypocrite and on TV this morning he was accused of attacking the working class, it was pointed out how much money he claimed in expenses etc. Next thing people will be saying "why do politicians never answer the question?" "Why do politicians always lie?" This is why. He has said an illegal practice (which I have indulged in in the past) is wrong. If he had condoned it he would have been crucified as well. It's damned if you do and damned if you don't.
Zingari Posted 24 July 2012 Posted 24 July 2012 As I understand this he was asked a question to which he gave his honest opinion, from which he's been called a hypocrite and on TV this morning he was accused of attacking the working class, it was pointed out how much money he claimed in expenses etc. Next thing people will be saying "why do politicians never answer the question?" "Why do politicians always lie?" This is why. He has said an illegal practice (which I have indulged in in the past) is wrong. If he had condoned it he would have been crucified as well. It's damned if you do and damned if you don't. i knew you'd try put a gloss over the issue
Webbo Posted 24 July 2012 Posted 24 July 2012 I stopped working cash in hand many years ago when I started on the family tax. Tax evasion is one thing, benefit fraud is another. If people offer to pay me in cash I always say there's no need unless it's easier for them, often because I suspect they're angling for a discount, which I won't give. Personally I prefer cheques because it's easier to keep a track of when I do my books.
MooseBreath Posted 24 July 2012 Posted 24 July 2012 Obviously what he means to say is, people avoiding tax by accepting cash is morally wrong, which is a fair and totally uneventful comment. The BBC have twisted it slightly to make it seem more interesting, which it still isn't. Must be an incredibly slow news day.
whoareyaaa Posted 24 July 2012 Posted 24 July 2012 They should of thought about that when they invented money. I can't stand the goverment coming out with these claims about people not paying their Tax they need to take a look at their self's firstly... look at the lives they have all due to working for a corrupt ring of people. Fuvk the goverment they are just robbing bastards tax us on everything and people just go along with it.
Sol thewall Bamba Posted 24 July 2012 Posted 24 July 2012 I work in a restaurant for a bit of spending money when I'm at uni, If someone gives me a tip, does that count as being "morally wrong". Just goes to show how out of touch MP's are until it comes round to election time again.....
Rincewind Posted 24 July 2012 Posted 24 July 2012 So you got away with the first scam and not the second So far I have not been asked to clean any windows by lonely widows. And I can only afford B % B anyway. Not sure if I could get up a ladder but was thinking about this the other day. If somebody has the transport and equipment and tools of the trade I can help by doing ground floor windows. Just pay me in beer money. One pint a hour at £10 a pint.
Leicester_Numan Posted 24 July 2012 Posted 24 July 2012 It's not the responsibility of the buyer to protect the Treasury from tax evasion. It's up to the tradesman to decide whether he declares it or not. Exactly
Dr The Singh Posted 24 July 2012 Posted 24 July 2012 I think there's bigger fish to fry, such as all those prostitutes and gigalos that are on the game that don't charge VAT or get taxed!!!!!!
Zingari Posted 24 July 2012 Posted 24 July 2012 I think there's bigger fish to fry, such as all those prostitutes and gigalos that are on the game that don't charge VAT or get taxed!!!!!! I thought we agreed keep quiet about that dodge Doc !! you needn't start thinking i'm paying vat on top of the £5
Daggers Posted 24 July 2012 Posted 24 July 2012 i knew you'd try put a gloss over the issue He doesn't like it that all of the Tory party keep being painted with the same brush.
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