We’ve all heard the phrase ‘cash is king’. It’s a term that’s been around for decades, and despite the digitalisation of payment processes, it still holds true for some people. To this day, there are cash in hand jobs advertised in the job market, and for some employees, it’s the preferred payment method.
This is because payments are usually made more frequently than if you’re on the company payroll. Instead of having to wait until the end of the month, cash in hand employers often pay their workers at the end of their shift or on a weekly basis.
Examples of cash in hand jobs include delivering paper rounds, babysitting, gardening, dog walking, and waiting tables. These jobs are more popular with young people since they can often be done without prior training or experience.
But, finding a cash in hand job isn’t easy. It takes some searching and can seem impossible if you don’t know where to look. To help you with your job search, in this article, we’ve outlined the best places to look for cash in hand jobs.
Where can I find cash in hand jobs?
One of the best ways to find a cash in hand job is to explore job listing websites such as Indeed, Reed, Totaljobs, Gumtree, etc., and search ‘cash in hand jobs’. Since anyone can view these job listings, many businesses advertise vacancies on these platforms to cast a wide net and attract as many applicants as possible. To make your life easier, some of these websites even have a cash in hand filter, so you don’t have to sift through hundreds of job postings.
However, many small and local businesses do not advertise job openings on internet platforms. For cash in hand jobs in your local area, it’s best to ask these businesses in person by going door-to-door. This method is extremely useful if you’re looking for a part-time position instead employment on a full-time permanent basis. This is because many local businesses only need extra help during certain hours of the day or in certain busy periods, such as the holiday season.
How do I increase my chances of finding a cash in hand job?
Employment websites such as Indeed, Reed, and Totaljobs give you the option to set up job alerts. Job alerts not only increase your chances of getting employed, but they can also reduce the total time you spend on a job search.
A job alert is a nifty tool that notifies you when new jobs have been listed related to your interests. You can set up a job alert for the words’ cash in hand’. Once this is set up, the website will send you an email whenever a job posting with that term in the job description is listed on the platform.
In normal circumstances, if you were looking for a cash in hand job, you would search the term ‘cash in hand’ every day or every other day to stay up to date with new job listings. This is an extremely time-consuming process, particularly when you have multiple websites to search through.
Instead of searching through each website manually, a job alert notifies you each time relevant jobs or similar jobs are posted. This allows you to navigate to that job listing directly without sifting through hundreds of job postings, thus, streamlining the search process.
Also, since you are notified of each relevant job posting immediately, you can be one of the first to apply for the position. This can increase the chances of you being a successful candidate as there’s a high probability the employer will view your application first.
What is a cash in hand job?
A cash in hand job is where your take-home pay is paid out in cash instead of a bank transfer or other forms of payment. It should be noted that the amount you get paid remains the same, regardless of the payment method your employer uses.
An important distinction has to be made between your salary or hourly wage, and your take-home pay, as this is often confused when it comes to cash in hand payments.
Your salary or hourly wage, also known as your gross income, is your income before Income Tax and National Insurance contributions have been deducted. Your take-home pay, also called your net income, is your income after the deductions have been made – i.e., what you take home.
To show this as an example, suppose you earn £30,000 per year and are paid monthly. That would equate to £2,500 per month.
However, that is not how much you take home each month. Why? Because Income Tax and National Insurance contributions are yet to be deducted. Using a salary tax calculator, we can determine your monthly take-home pay as the following:
| Annual Salary (Gross Income) | £30,000 |
| Monthly Salary (Gross) | £2,500 |
| Income Tax | £291 |
| National Insurance contribution | £192 |
| Monthly Take-Home Pay (Net Income) | £2,017 |
With a salary of £30,000, your monthly take-home pay would be £2,017 (£2,500 – £291 – £192).
Therefore, you would be paid £2,017 – not your gross monthly salary – in cash as opposed to a bank transfer or a cheque.
Are cash in hand jobs illegal?
It’s a common myth that getting paid via cash in hand is illegal. In fact, there’s nothing wrong with receiving your wages in cash. It’s completely legal, and whether an employer pays their workers via bank transfer, cheque, or cash, it’s all the same.
The reason why cash in hand is thought to be illegal is that this payment method is often utilised as a way to avoid paying taxes. This occurs when the employer does not declare your wages to HM Revenue & Customs (HMRC) and pays you ‘under the table’ with no official records of your wages.
When is cash in hand considered legal?
Suppose you are working on a construction site as a manual labourer. You are employed on a full-time basis of 40 hours per week and earn the National Minimum Wage of £9.50 per hour. You are paid weekly and have agreed with the business to receive your wages in cash.
For the cash payment to be made legally, your employer would disclose your weekly wages to HMRC under PAYE (Pay As You Earn). As such, your weekly payslip would look as follows:
| Hourly Wage | £9.50 |
| Weekly Pay (Gross Income) | £380 |
| Income Tax | £28 |
| National Insurance contribution | £18 |
| Weekly Take-Home Pay (Net Income) | £334 |
Thus, you receive a cash payment of £334 (£380 – £28 – £18) each week.
As you can see, your employer has already factored in the relevant tax and National Insurance deductions before paying you. Also, your payslip will include your PAYE number and will clearly state that you will receive your wages in cash, making this form of cash in hand payment completely legal.
When is cash in hand considered illegal?
Let’s use the same figures as above, where you work 40 hours per week, earn £9.50 per hour, and are paid weekly in cash. As we’ve established, you should be paid £334 weekly after deductions.
However, suppose your employer gives you £380 in cash, and you are not given a payslip. This means that you have been paid your weekly gross income without the necessary deductions. Also, considering you have not been given a payslip, this strongly indicates that your employer will not disclose your income to HMRC.
This is where cash in hand is deemed illegal – it’s the avoidance of tax that is illegal, not the cash payment.
Why would an employer not disclose cash in hand wages to HMRC?
There are financial incentives for an employer not to disclose an employee’s income. This is because employers pay National Insurance contributions on their employees’ wages.
For instance, using the example above of someone working full time, earning £9.50 per hour, and being paid weekly. The employer would have to pay £30 every week to HMRC in National Insurance contributions. This means that the workers’ wages cost the employer £410 per week, not £380. That extra £30 per week equals £128 per month and £1,536 per year.
This means that by paying in cash and not disclosing the employee’s income, the employer would save £1,536 per year. This is just for one employee and for someone earning the National Minimum Wage. They would save even more money on workers with higher salaries.
What if my employer has not paid Income Tax and National Insurance contributions on my behalf?
If your employer does not take care of these things first, then there’s a good chance they’ll be fined and prosecuted by HMRC.
To ensure you stay on the right side of the law and you don’t get prosecuted along with your employer, you should disclose your income to HMRC directly.
This can be done by filing a Self Assessment tax return. A Self Assessment form informs HMRC on how much you earned for that year and calculates how much tax is owed based on your earnings. This is the same method by which self-employed workers file their annual taxes.
Filing Self Assessment forms can be tricky, particularly if you’ve never done it before. To help you, HMRC has a helpline you can call and an online support hub with relevant information.
How can I prove how much I earn if I am paid in cash?
There will be times when you need to prove how much you earn. This could be when you’re applying for a mortgage or filing your Self Assessment tax return.
In any case, when you are paid in cash, it can be trickier to prove this since your bank statements won’t show the bank transfer of your wages. To solve this, it’s important to make sure you get a payslip from your employer.
Your payslip will include all the information you’ll need, such as your PAYE number, how much you have earned, how much you have paid in Income Tax, and how much you have paid in National Insurance contributions.
You should receive payslips with every paycheck, but if you aren’t, you can request them from your employer.
Final thoughts
Cash in hand jobs are still sought after by some people, particularly those looking for short-term or part-time employment. Whilst it’s not illegal, there are strict rules that your employer must adhere to so that they’re not breaking the law.
Employers must give cash in hand employees a PAYE number, and they must disclose the employee’s wages to HMRC. If not, employers can expect to receive a huge fine and be prosecuted in court.