Dave Hartnett has said that ‘the nation gets diddled’ by those who are paid cash-in-hand and do not pay VAT.
Examples used by the permanent secretary for tax include builders and cleaners who are paid cash-in-hand for their services; Payments which subsequently evade income tax or VAT.
Hartnett said that cash-in-hand payments deprive hospitals and schools of money and that if it continues there will be more Government cuts to public services in the UK.
“Tax provides the funding to run the country: hospitals, schools and everything else. Every time some-one pays cash in order not to pay VAT, the nation gets diddled,” Hartnett said.
“Cash has been a problem for a long time. The people who are worried about it should use our whistle-blowing line to tell us. We are getting better and better at finding people who receive cash,” he added.
Hartnett also announced that HM Revenue and Customs (HMRC) aim to develop the number of prosecutions for wilful non-payment of tax to 1,200 per year.
HMRC have also planned to run campaigns targeted at builders who are paid cash-in-hand and those who used to pay tax at the top % rate but have now stopped doing so.
The Revenue have brought in £500m in tax through similar tax amnesty campaigns since 2007.Previous targets included private tutors, eBay traders, electricians and plumbers.
Kevin Kinsella Jnr, of KinsellaTax, said:
“Well Mr Hartnett is of course history. I can’t remember any permanent secretary being accused of being a liar by the Select Committee of the House of Commons.
I have always had problems about HMRC obtaining information from stolen property from Switzerland to pursue tax dodgers. There are many dodgers in England that take up more than enough time by HMRC.
“I acted for a chap who insisted he was paid in cash by someone who was paying for his cat who had been lodged in their kennels. It was subject to an enquiry by HMRC and we actually showed the money had been accounted for in the yearly accounts and reason he would not take cheque was that is the cheque bounced it took too much effort to try to recover the money. So there are reasons people want to be paid in cash, especially for small jobs.”
Do you work in the building or cleaning profession and receive cash-in-hand payments?
Have you received a tax enquiry letter from HMRC?
KinsellaTax are here to fight your corner and to ensure you are treated fairly and legally by Inland Revenue tax inspectors during the course of any HMRC tax enquiry for tax evasion.
Call us now on 0800 471 4546 or fill in a tax enquiry form online.
KinsellaTax staff consists of ex-HM Inspector of Taxes and ex-HM Customs and Excise Officers, fully experienced in HMRC investigations.