Are 'cash in hand' payments morally wrong?


Updated on 24 July 2012 | 33 Comments

An MP says that cash in hand payments cost the Government money and that everyone else pays more as a result. Do you agree?

Treasury Minister David Gauke has told the BBC’s Newsnight programme that it is "morally wrong" for people to pay builders, plumbers and other tradespeople in cash.

The implicit accusation in his comments appears to be that anyone who accepts cash in hand is doing so to avoid paying VAT and income tax, keeping parts of their business ‘off the books’.

The Government estimates that it loses around £2 billion a year to this type of tax evasion. Mr Gauke said the real problem was households conspiring with tradespeople to get a discount if they pay with cash.

His comments are the latest in a long line from ministers as they try to clamp down on both tax evasion and tax avoidance.

What do you think of Mr Gauke's comments? Is it "morally wrong" to pay people in cash? Vote in our poll below.

And have your say in the Comments box below.

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