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Cash in Hand Payments ‘Morally Wrong’

Cash in hand payments to tradesmen and other services throughout the UK has been branded as ‘morally wrong’ by Treasury Minister, David Gauke. The minister warned that this is damaging the economy and assisting tax-evaders, whilst leaving others to foot the bill.

It is thought that cash in hand payments costs Britain billions of pounds a year in lost tax revenue, while others had to pay more to make up for the losses.

However there is a degree of hostility against Mr Gauke after his comments, with critics accusing him of being ‘unnecessarily moralistic’ about normal people trying to keep their household bills down.

In order to tackle the problem, HMRC are planning an amnesty within which traders who admit they have evaded tax by accepting cash in hand for services are encouraged to come forwards, and will face a reduced penalty. This will include £200 in fines as well as a further fine of 10% of whatever they are found to have avoided in tax. Anyone who does not take up this offer will be subject to criminal prosecution if they are found to have not paid what they owe.

Other operations since 2007 have pulled in an extra £500m in tax, after targeting home tutors and eBay traders.

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