Is Paying Cash In Hand To Tradesmen Morally Wrong?

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Various government ministers have stated in the press that paying cash in hand to tradesmen is ‘morally wrong.” As usual, this is not about morals, its about money and gaining more tax coffers.

The quote: People who pay cash in hand to tradesmen are “morally wrong”, damaging the economy and helping tax evaders.

The government are once more trying to find cash in the attic by attacking the likes of window cleaners and plumbers or anyone else who earns money from cash in hand work, because they estimate that a couple of billion pounds is sat untapped for them to squander.

Is Paying Cash In Hand To Tradesmen Morally Wrong?

I have a few issues with government officials trying to force their brand of morals on us. MP’s have been caught out in all parties for fiddling expenses, doing dirty deals with banks, house builders and the media and generally showing that the rules don’t apply to them, only to everyone else. Their own moral stance seems to be ‘do as I say not do as I do.” Leading by example would be the nice for a change.

As an example, @JamesFirth on Twitter pointed out; “If you were to pay your window cleaner by cheque instead of cash (as suggested), a cheque clearing fee is 28p, and then you have to pay 65p charge to write a cheque, for a service costing under £10. So if you pay a trades person through your bank, your bank can make huge profit *and* minimise its own tax bill. Rob Pete the Plumber to pay Lloyds.”

( Lets not forget how many banks were rescued by public coffers, which, the public had no choice in. So much for democracy.)

Is that fair? Last time I looked cash was still legal tender in this country.

Out Of Touch MP’s

As I said in a recent blog about Jimmy Carr, who was made a nice convenient scapegoat for a tax bashing, if you make a fair system people will be less tempted to avoid or evade tax. There are those that will agree that paying cash in hand to tradesmen is morally wrong, personally I fail to see how penalising the small amounts taken as cash in hand payments would be policed. If you pay cash in hand for a job then it is the workers’ responsibility to pay their own taxes. It’ not for us to to police them on behalf of the government.

Fat MP’s who earn large wages have no real concept of how people who may earn some cash in hand survive on a daily basis. They are out of touch with reality.

Let me pose this question; Before the various governments realised that a decade of overspending gluttony may require some correction, were they so hot on tax evading/ avoidance? I think not. The plain fact is, that the country is skint. We are skint because of  bank, government and financial greed and a lack of regulation in the right places.

This is the reason they are telling us our morals are bad for paying cash in hand. To which, I would say, check your own glass house before chucking stones at everyone else. Basically, they have run out of ideas as to where to get more tax to pay off the UK’s massive debt mountain and will try to squeeze those who can least afford it for a bit more.

Unlike foreign property buyers, most tradesmen spend the majority of their cash earnings in this country, which actually helps the economy. Fixing the tax system is a better way forward rather than sitting in judgement on folks who are just trying to make a living in very difficult times. If you want to mitigate your taxes properly check out our tax trusts page and do it properly. We will soon be adding another specialist trust for protecting assets. 

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