Accepting cash-in-hand work may mean your employer isn't paying National Insurance contributions or income tax on your behalf. This could affect your entitlement to state benefits like unemployment benefit or state pension in the future. It is also illegal for employers not to pay the correct taxes and for employees to not declare their income.
The National Minimum Wage and National Living Wage are the minimum amounts an employer must pay their workers. Even if you are being paid cash-in-hand, you are still entitled to be paid at least the National Minimum Wage or National Living Wage, depending on your age. Employers breaking these laws can face prosecution.
It's important to keep a record of the hours you work, the rate you're paid, and the dates you received payment. This will help you track your earnings and provide evidence if you need to make a claim for unpaid wages or report tax evasion to HMRC.
You can report suspected tax evasion to HMRC (Her Majesty's Revenue and Customs) anonymously. They have a dedicated online service for reporting tax fraud and avoidance.
Even if you're paid cash-in-hand, you may still be entitled to certain employment rights, such as protection against discrimination and unfair dismissal. However, proving your employment and enforcing these rights can be more difficult without proper documentation and payslips. Seek legal advice to understand your rights.
