In the UK, all income, including cash-in-hand earnings, is subject to tax and National Insurance contributions. Both employers and employees have legal obligations to declare income to HMRC (Her Majesty's Revenue and Customs). Failure to do so can result in penalties and legal repercussions. Ensure the employer is deducting and remitting the correct taxes and providing payslips.

How can I ensure a cash-in-hand job is legitimate?

While cash-in-hand jobs aren't inherently illegal, it's crucial to verify the legitimacy of the employment. Ask detailed questions about the role, responsibilities, and payment terms. Research the employer online and check for reviews or complaints. Be wary of offers that seem too good to be true or require upfront payments from you. Request a written agreement outlining the terms of employment, even if payment is in cash.

What are the potential risks of accepting cash-in-hand jobs?

Accepting cash-in-hand without proper documentation can lead to difficulties in proving your employment history for future job applications, loan applications, or claiming benefits. You may also lack employment rights, such as sick pay, holiday pay, and protection against unfair dismissal. Furthermore, if the employer is not operating legally, you could be implicated in tax evasion or other illegal activities.

What kind of records should I keep for cash-in-hand income?

Even with cash payments, maintain meticulous records of your earnings. Keep a log of the dates worked, hours worked, and amount received for each job. Obtain receipts or written confirmation of payments from the employer whenever possible. These records will be essential for declaring your income to HMRC and proving your earnings if needed.

What are my rights as a worker in the UK, even if paid cash-in-hand?

Regardless of how you are paid, you are generally entitled to certain basic employment rights in the UK. These include the right to a minimum wage (which varies depending on age), protection against discrimination, and a safe working environment. However, accessing these rights can be more challenging if you are paid cash-in-hand and the employer is not complying with legal requirements. It's advisable to seek independent legal advice if you believe your rights have been violated.