It is illegal for employers to avoid paying National Insurance and income tax by paying employees cash-in-hand. Employees are also responsible for declaring any income earned and paying the appropriate taxes. Accepting cash-in-hand payments without declaring them can result in penalties from HMRC.
Cash-in-hand jobs are often found in sectors such as construction, cleaning, hospitality, and domestic work. These roles may be advertised as temporary or part-time positions.
Risks include lack of employment rights (such as sick pay or holiday pay), no protection against unfair dismissal, and potential difficulties in claiming benefits if you become unemployed. You also may not be covered by employer's liability insurance if you are injured at work.
It's important to be cautious of job offers that seem too good to be true. Research the employer, ask for references from previous employees, and ensure you understand the terms of employment, even if it's a cash-in-hand arrangement. Consider whether the wage offered is realistic for the work involved.
If you suspect an employer is deliberately avoiding tax and National Insurance contributions, you can report them to HMRC (Her Majesty's Revenue and Customs). You can report anonymously if you prefer.
