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MPs suggest £2 billion a year lost in taxes through illegal employment

MPs across the Houses of Parliament have today come out to criticise the cash in hand culture which is prominent in many parts of the UK. Estimates suggest that upwards of £2 billion a year is lost in taxes as cash in hand employment does not normally go through the books and therefore no taxes are recorded or collected. The situation is likely to get worse in the short term with more and more people struggling and taking on less well paid work which is often kept away from the official working books.



The Treasury is in a very difficult situation because relentless pursuit of those working cash in hand is likely to hit those most in need of income although there is also a need to ensure a level playing field with regard to the payment of tax on income. Many employers are said to be looking towards cash in hand as a way to circumnavigate the minimum wage which has pushed some of the historically less well paid employment positions out of the marketplace.



The government seems set to make a serious attack on non-payment of taxes in the future as this problem looks to be growing into a relatively serious issue.

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