how do you pay tax when you get cash in hand?

Question

i met a street artist in LA i think it was and he was earning equivalent to about £100 a day cash in hand jsut from drawing. would this guy have to pay tax on this or would no one have a clue he was earning so much. just wondered

Answer 1

Here in the US just about everybody pays taxes whether its some item you buy (sales tax) or you pay it to the government direct( income tax). But all items sold at retail incoulding the garge sales have what is called a hidden tax that makes up about half of the price of the item.

Answer 2

If you were registered as self employed you'd pay the tax - otherwise ask no quistions policy.

That's the whole point of cash in hand - not letting the tax man have his share.

Answer 3

Probably they take an average amount of earnings for that particular job.As this system works with waitresses in the US many of which are super rich,in particular those working for the local mafioso.

Answer 4

I wouldnt ! its the spirit of free enterprise , its better than begging
for a living or scrounging off the state....the big question is what were his drawings like?

Answer 5

Keep it quiet and the tax man cant get his greedy hands on it lol..

Answer 6

You should but you dont-thats why its cash in hand.

Answer 7

You would have to become self employed.

Answer 8

Don't ask, don't tell.