Dodwell: the trouble with cash and the PAYE cleaner

The ruckus about paying in cash is creating some mirth as former chancellors and serving MPs vie to outdo each other on their payment arrangements for their cleaners, gardeners and car washers, says Bill Dodwell, senior tax partner and head of tax policy at Deloitte

I was rather surprised to read that former chancellor and prime minister Gordon Brown paid his cleaner through PAYE. After all, surely the individual met the tests for self-employment?

It’s doubtful that a busy minister spent time giving instructions on how the work should be done.

It was thus less surprising to hear shadow chancellor Ed Balls – and former special adviser to Gordon Brown – tell us that he gets receipts for cash payments to gardeners and cleaners.

Financial secretary to the Treasury - tax minister - David Gauke got into a spot of hot water when he mentioned that using cash could lead to tax evasion. Senior ministers proclaimed that there was nothing wrong with using cash.

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