Cash in Hand
A cash in hand payment refers to an employer giving an employee wage without deducting tax and national insurance contributions. These types of payments must be declared to HMRC.
It is not illegal to pay employees using the medium of cash.
An employer paying workers cash avoids paying the employers and employees National Insurance contributions and PAYE (pay as you earn) income tax payments. This is illegal to do.
A self-employed person may pay themselves cash in hand but must keep records and declare their income to HMRC.
Additional Information
External Resources
The following links provide additional information. The links are to pages on websites over which we have no control. This information is provided for reference only.
Declare or report cash in hand pay (www.gov.uk) - External Link.
