Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Cash is king

31 October 2007
Issue: 4132 / Categories: Forum & Feedback
Do the money laundering rules apply to a private transaction?

I am a qualified accountant. My wife and I own our home jointly and this needs a new kitchen and other structural work. We have been recommended to a local builder who has completed excellent work for a close friend.

On visiting us the builder has given an approximate quote for the work of about £15 000 which is almost half what we expected. The builder is not VAT registered and the way in which he wants the transaction to work is that we pay for all materials and work done by other contractors direct while we pay him and his associate £100 each in cash per day or £125 each per day by cheque.

I am concerned about the possible money laundering and tax evasion aspects of this proposed transaction while stressing that the builder is not my client....

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon