No VAT payable if paying by cash!

How often have you heard this? How often have you seen someone actually put this on their invoices!!!

You may have come across this frequently in the building trade, but there are anecdotal reports of other businesses such as lawyers asking for payment in cash too (which they would collect to save it going to the office)!

The other side of the coin is someone charging VAT but not actually being VAT registered.

VAT fraud is a type of tax evasion. It happens when a business does not charge VAT when they should, or charges you VAT but does not pay it to HMRC.  It is possible to check if a VAT number is registered with HMRC - https://www.gov.uk/check-uk-vat-number

In a similar vein, a recent posting was someone looking for “cash in hand” jobs….potentially fraudulent on both sides – payer and payee.

Please do not fall into these “traps”. Tax evasion is an offence and there are fines, penalties and even prison!

Do you need to talk this through?– Contact us, we are here to help!