Paying a sub contractor in cash

danielboon

In 2008 i had a sub contractor working for me, at the time money was slow coming in from clients, when i did get it, i would have to go and cash the cheuq because i couldnt wait for it to clear through the bank. So basiclly, trough 2008 the sub cantractor was paid about 38000 in cash payents, no cheuqs, as he was in the same boat as i.. My accounts are due in october.

Will i get in trouble for paying him cash, every thing else was above board, i do have a payments card for him..

Im a drylining contractor and i have a C2, so does the guy..

Thanks

Legend100

there is nothing wrong with paying in cash as long as it is recorded and declared properly.

Ideally, paying by cheque is preferable for audit trail purposes if the revenue came back but if you have his invoices and you have a payments card from for him, then there is nothing wrong with paying in cash.

The problem arises when paying in cash and it is not declared (more of a problem for him as he won't be declaring his sales)

just write down all the cash payments on the payments card and onto the RCT 35 and you will be ok

danielboon

thanks mate, big relief