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Cash in hand 'morally wrong'

Exchequer Secretary David Gauke has said that home-owners who accept a discount and pay workers cash in hand, are guilty of helping them avoid tax and has called the practise 'morally wrong.'

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Tax specialist: 'Cash in hand is fraud not tax avoidance'

Tax specialist Miles Dean, of Milestone International Tax Partners, said those who paid cash in hand were guilty of fraud rather than tax avoidance.

He said:

What David Gauke fails to understand is that paying the plumber, builder or candlestick maker in cash to avoid the VAT element is fraud.

The provider of the services is obliged by law to charge VAT - if he doesn't and the customer agrees to pay cash without an invoice the two have colluded to defraud HM Revenue and Customs.

This isn't tax avoidance, it is fraud.

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