All income, including cash-in-hand earnings, is subject to UK tax laws. You are legally required to declare any income earned to HMRC (Her Majesty's Revenue and Customs). Failure to do so can result in penalties. Employers are also legally obligated to ensure they are complying with minimum wage laws, providing holiday pay, and making appropriate deductions for tax and National Insurance, even for cash-in-hand arrangements. Be wary of jobs that explicitly avoid these legal requirements.
Cash-in-hand jobs often lack the legal protections afforded to employees with formal contracts. This can include limited or no access to sick pay, holiday pay, or protection against unfair dismissal. It can also be difficult to prove your employment history for future job applications or loan applications. Additionally, there is a higher risk of exploitation, such as being paid below the minimum wage or working in unsafe conditions without proper insurance coverage.
Even if paid in cash, keep a detailed record of your hours worked, pay rate, and payments received. This will be crucial if any disputes arise. Before accepting a job, clarify the terms of employment, including pay rate, working hours, and responsibilities. If possible, get a written agreement outlining these terms, even if it's not a formal contract. Be cautious of jobs that seem too good to be true or involve illegal activities.
Common cash-in-hand jobs in London can include roles in construction, cleaning, hospitality (such as bar work or kitchen assistance), gardening, and some types of manual labour. These jobs often attract individuals seeking immediate income or those who may face barriers to traditional employment.
The Advisory, Conciliation and Arbitration Service (ACAS) provides free and impartial advice on employment rights and responsibilities in the UK. You can contact them by phone or visit their website. Citizens Advice also offers free advice on a range of issues, including employment law. Ensure you are aware of your rights and responsibilities before accepting any job offer, regardless of the payment method.
