UK cash-in-hand culture 'booming'


The UK black economy could be worth more than £100bn a year, according to new research.
A report in the Economic Journal estimates cash-in-hand work is the equivalent of 10.6% of GDP.

Blue-collar workers are the least honest, declaring 46% of their income, while white-collar workers are slightly better, reporting 61% of income.

The government is trying to clamp down on evasion, following a report on the black economy by Lord Grabiner.

The report, by Panayiota Lyssiotou and Panos Pashardes of the University of Cyprus and Thanasis Stengos of the University of Guelph, Canada, however, warns against raising taxes to make up the shortfall.

"A country trying to curtail the loss of tax revenue by raising tax rates can create a vicious cycle, as this reinforces the incentive not to declare economic activities to the public authorities," they said in the report.
The writings on the wall isn't it 8O
The tax system is the cause of the problem. If you have a second job, then you are placed on a (punitive) tax code, emergency one, I think. My missus, who worked part-time at nigh to feed my curry, beer and burping habit, was taxed ridiculously for her second job.

Mind you, that load of tossers at Westminster probably account for 3/4 of the figure quoted. The Register of Members Interests is hardly a rigorous system, with the lot of them hiding not just skeletons, but whole bloody cities worth of bones in the rcupboards with regards to secondary employment. How many have Non-Directorships in the City?? Or act as advisors to some firm or other???? Does the Inland Revenue hound them in the same way as somebody who is not in Parliament? I fear not.

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