Construction: Payment Methods

(asked on 15th May 2019) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate he has made of the annual cost to the public purse of the cash-in-hand economy in the private domestic repair, maintenance and improvement sector in the construction industry.


Answered by
Mel Stride Portrait
Mel Stride
Secretary of State for Work and Pensions
This question was answered on 20th May 2019

HMRC does not measure how much of the tax gap is specifically linked to cash. Cash plays a part in supporting the hidden economy and evasion. These behaviours consistently account for roughly 25% of the tax gap.

If anyone is aware of instances of a business or employer using cash to evade tax they can report this to HMRC; online or by phone.

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