People who pay cash in hand are “morally wrong”, damaging the economy
2012-07-25 0:00

By Christopher Hope | Telegraph.co.uk

It is ’morally wrong’ to pay tradesmen cash in hand, says David Gauke.

David Gauke, a Treasury minister, told The Daily Telegraph that home owners who allow workmen to evade VAT or income tax were forcing others to pay more.

His comments reflect growing concern in Whitehall about the cash-in-hand economy, which costs Britain billions of pounds a year in lost tax revenues.

However, critics accused the Government of being “unnecessarily moralistic” about ordinary people trying to keep their household bills down.

Mr Gauke, the Exchequer Secretary to the Treasury, said: “Getting a discount with your plumber by paying cash in hand is something that is a big cost to the Revenue and means others have to pay more in tax.

“I think it is morally wrong. It is illegal for the plumber but it is pretty implicit in those circumstances that there is a reason why there is a discount for cash. That is a large part of the hidden economy.”

According to a report by the Public Accounts Committee, more than two million people make cash-in-hand payments costing the Treasury an estimated £2  billion. There is no law against paying someone in cash, but tradesmen are under a legal obligation to disclose their earnings to HMRC and say whether they are liable for income tax or VAT.

Labour MP Austin Mitchell, who sits on the Public Accounts Committee which monitors public spending on behalf of Parliament, said that Mr Gauke was being “unnecessarily moralistic” and should focus instead on large-scale tax avoidance.

He said: “This is petty stuff. There would have to be large-scale surveillance to stop it. You can’t control people’s morals like this and it is best not to try.”


[...]


Read the full article at: telegraph.co.uk













Related Articles
Corporations Are People; Money Is Speech
Time is money: British police spent $54,000 on calls to talking clock
Crisis forces Greeks to keep cash out of banks
Apple has more cash than the US federal government
Sweden Considers Cashless Society
The Cashless Society Has Arrived
London Mayor Boris Johnson admits paying cash ’a lot’ after minister says families who settle bills cash-in-hand are as bad as tax avoiders


Latest News from our Front Page

Not Again: More US AID, Missiles Shipped to al Qaeda, al Nusra and ISIS in Syria, Iraq
2015-03-06 4:28
Two weeks ago, 21WIRE reported on how ISIS and other terrorists militants operating in Syria and Iraq are receiving regular weapons and ‘supply drops’ – forming a ‘rat line’ which seems to be playing a crucial role in keeping this highly profitable conflict going on both sides. This week, it’s been reported that Jabhat Al-Nusra fighters have been brandishing US-supplied ...
Swedish parliament removes Baroque artist's bare breasted painting for offending feminists and Muslims
2015-03-06 3:28
A nude painting named Juno, which was painted by baroque artist G E Schröder and has hung in the dining room of the Swedish Parliament for 30 years has been taken down for fear of offending the sensitivities of feminists and Muslim visitors, Swedish newspaper, The Local reported on Thursday. Explaining the ban on the baroque breasts, a source from the ...
White US children will be minorities by 2020 after immigrant 'baby boom', Census reveals
2015-03-05 19:50
This is the result of an ongoing trend of declining birth among white Americans and a baby boom among immigrant groups, as well as a surge in immigration. By the year 2020, 50.2percent of all children in the US are expected to be non-white, according to the Census. By 2044, whites will be outnumbered by minorities. The Census study, released ...
New Jersey Shopkeeper Hangs 'White History Month' Sign In Window
2015-03-05 18:08
A deli owner in Flemington, New Jersey, has angered many of his neighbors by posting a sign on his window that reads, "Celebrate Your White Heritage in March White History Month." Jim Boggess, who is the owner of Jimbo's Deli, says he put up the sign to remind everyone that they should be proud of their race and culture. "No matter what ...
The Viking ”Maine Penny” Mystery
2015-03-05 3:41
In 1957, during his second year of digging at the Goddard site; a large prehistoric Indian trade village in Penobscot Bay on the central Maine coast, local resident and amateur archaeologist Guy Mellgren found a small silver coin. The coin is later identified by experts as a Norse silver penny dating to the reign of Olaf Kyrre, king of Norway ...
More News »