Cash in hand - legal?

[pmeswani]

Not quite. If you've income that needs to be taxed, you're obliged to request a tax return. The onus is on you. Not HMRC.

Fair point. I was dithering on stating that, but wasn't too sure.

[Sausage Surprise]

The company are obviously trying to dodge their employer's NI as well as any other responsiblities. HMRC have guidelines as to who is and isn't self employed and I doubt in this case she'd be deemed self employed.

However, it's work and I'd just declare it on my self assessment.

[Turion]

I would be more worried about actually getting paid, than fretting about possible tax issues. AND, She's already been binned, why does she want to go back and help them out for such a pittance? She should have some pride and if she needs money get a temp job.

[oracleslave]

She should have some pride and if she needs money get a temp job.

I think it's fairly safe for me to presume you know nothing about her personal circumstances. In which case why the arrogant and judgemental parting shot you cretin.

[Mustang]

One point I think everyone is missing: they made her redundant and then needed her back. Does this mean that the redundancy was unjustified and, if so, doesnt she have a legal claim there?!

[NotAllThere]

I think it's fairly safe for me to presume you know nothing about her personal circumstances. In which case why the arrogant and judgemental parting shot you cretin.

Because it's his nature.

[pmeswani]

One point I think everyone is missing: they made her redundant and then needed her back. Does this mean that the redundancy was unjustified and, if so, doesnt she have a legal claim there?!

It may not have been unjustified... the company was caught with their pants down... found themselves in a tricky situation and wanted her to come back for a short time.

[dave20]

As long as the company paying her, is not an employment agency, then paying for her services cash in hand is fine. (It's the same as a company paying a builder to come in and build a wall for them - gross pay)

She could declare this income at the end of the year on a self assesment, then wait for the tax bill.

If she anticipates doing more contract work in the future, then she should register as self employed.

[electronicfur]

It's up to her to decide whether she trusts them to pay her for the two weeks work.

Although she should fill out a Tax Return then, to declare the £600 income, before doing so she should phone up HMRC.

It is my experience that because the sum is small, they will say it's not worth their while to process her tax return, and tell her she does not need to fill one out. Make sure she asks to get that in writing of course.

Cheers,
EF

[ruth11]

I would be more worried about actually getting paid, than fretting about possible tax issues. AND, She's already been binned, why does she want to go back and help them out for such a pittance? She should have some pride and if she needs money get a temp job.

She wants to work for this company, was binned due to closure of the depot she was working in and a restructure where some personnel were moved to another depot, the rest laid off. It was a head count thing rather than a job thing. They've now realised they need someone to do her job, but nobody that moved over was doing it and they don't know how. She went back in the hope that they will realise that they need her and take her back on, permanently eventually. But they can't do that for 3 months due to the redundancy. She's not working there now, but there's still hope because people from other depots around the UK wanted her to stay but it's a bugdet thing and that's not looking so good.

She's been looking for temp work but believe it or not, there's not that much around! She'd do anything in order to be in work, even Bin Collecting, so in this case it was easier to take the money whilst it was on offer and maybe do herself a favour for the long term.

Fingers crossed they pay her as they have assured her. She did fill out timesheets for the hours she worked so there is some paperwork that I wasn't originally aware of.

As for it being a pittance - that's a bit harsh in the current climate. She's only 22, has only done this one job since leaving Uni and one has to start somewhere. The next temp job she gets will probably be worth even less to her.

It's all a means to an end really - she's going through the process to get into the Police Force at the moment. I can't believe how long and drawn out that process is!!

Thanks for all the other replies guys. I've given her what advice I've heard, whatever happens now is up to her.