How do you pay taxes if you are being paid by cash???

Question

How do you pay taxes if you are being paid by cash???

I’ve been working at petrol station for a month and they pay only by cash. I’ve asked them to pay me through a bank and provide proper payslips with tax codes and everything. But that is taking them 3 weeks now. I was promised to get paid weekly but I was just given £50 because my wages are being delayed. (£50 for the whole month that I’ve been working there) Everyone else is being paid by cash on time, but as far as I know that’s illegal because you don’t pay taxes that way. There fore my question is, if I agree to be paid by cash how do I pay taxes?
Thank you for any help

Answer 1

you notify the Inland Revenue and ask for a tax form, when you complete it they will notify you how much you owe and will contact your employer. Your employer will then make the deductions and deal with the Inland revenue.
It is not illegal to pay people in cash but it would be illegal not to notify the Inland Revenue.


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Answer 2

You cannot possibly be self employed working for an employer in a petrol station. It does not matter if you are paid in cash, but they must deduct tax and NIC and give you a payslip. They must also pay you the national minimum wage and give you written terms and conditions of employment. There are many issues here - what happens if you are sick, or, worse, injured at work, or beaten up by someone robbing the petrol station? What about paid holidays? By being treated as self employed, you forgo all protection in these areas.This sounds like a bad employer.
You can inform HMRC of what is going on and they can enforce the operation of PAYE, but it sounds as if this is the sort of outfit that would get rid of you once they found they had responsibilities, Im afraid.

Answer 3

Firstly, the legal minimum wage in UK is £5.25 an hour, so if you are getting paid less than this then you are being used and your employer is acting illegally. The fact they are paying all employees cash also suggests something is not right.

The first £4500 you earn in a year is not taxable (approximate figure).

You can do two things if you are paid by cash and wish to meet your legal requirements with the TAX MAN.

1) An umbrella company can consider your wages, calculate tax & national insurance, deduct this from your earnings and issue you a payslip. See the following link to learn about this scheme and how to sign up. It will help you remain legal with all your taxes but there is a small fee.

2) Register self employed with Inland Revenue. You keep all the money you get. Pay £2 a month for national insurance direct from your bank account, then at end of year you calculate and pay your taxes yourself.


My advice to you really is to get another job with a more legitmate working practice.

Answer 4

Paying by cash and not into a bank account is not illegal if you are receiving a net pay (method of payment is not stipulated in law). Employing you and paying cash in hand (i.e. not putting you through a payroll and deducting tax and NI) most definitely IS illegal. Also, telling you that you will be paid weekly and then not doing so is a breach of contract. My advice would be to call ACAS to find out your statutory rights and then report the employer to the Inland Revenue (HMRC).

It is possible that they are not deducting your tax and NI and therefore your "account" with HMRC will not be credited. This will cause problems if you ever need to claim benefits as it will look ike you haven't paid any contributions.

Providing you with an itemised payslip is also a requirement of law. If they are failing to do this then it is even more likely that you aren't on a payroll.

Regarding the National Minimum wage, HMRC does not tolerate any breaches of this, so you would be in a very good position to take them to an employment tribunal.

It's very unlikely that you are self employed, and even if they say you are, there are very strict criteria used by HMRC to determine employment status. Again, ACAS can help you with that.

Their phone number is 08457 47 47 47.

They will give you advice and also help you with any resulting disciplinary action your employers may try on you. Just remember through all of it - they are breaking the law and you are not!

Answer 5

As Fengirl says you cannot possibly be self employed and basically your employer must pay the tax and account for it to HMRC. It does not matter that you are actually paid in notes at all. It may simply be that your employer is being a bit slow in getting things together. I would suggest that you ask what is going on. If you work 40 hours a week and are adult your gross pay will be £200+ week and you should pay tax etc.

Take someone with you perhaps?

Answer 6

Taxes are the least of the problem at the moment. I'd be surprised if you have to pay taxes at all on 600 pounds a year, and if everyone else but you is getting paid on time, that may be all you're going to get.

Think about it.

Answer 7

You will need to keep a tally of your wages earned and when filing your taxes after the year closes, you will need to indicate that you earned money, but did not pay taxes on those funds. This will mean that you will need put away, say 15-20% of your earnings to cure applicable taxes. This is the legal way to do it. Good luck!

Answer 8

you can £5225 tax free and then any earnings after that are taxed. if your weekly earning are to be below £100 a week then dont worry about paying tax and NI. if you are expected to be over this amount then your employer should be deducting tax and NI and they may account for this once they have your affairs in order so you may have a lower net pay for that month as they have already advanced you £50.

Answer 9

Contact your local tax office and make sure you have a current tax code, then save about 25 percent of you wages, as you will have to pay yearly, save all receipts that are to do with work, like clothing and transport costs as these can be deducted from what you owe. Hope this helps.

Answer 10

Hey, if you don't want a cash-in-hand job, I'll take it. If you want to pay taxes, find another job where it is mandatory to receive payslips and provide National Insurance No.