Ever heard the term "Cash-in-hand", but do not know what it means?
Cash in hand means that your employer pays you in cash rather than into your bank via PAYE. This can be at the end of your shift, the end of the week, bi-weekly or monthly.

Before we continue here is an overview of some of the terms or words you may come across:
  • Pay as you earn
  • PAYE is part of payroll for HMRC
  • If your employer pays money in your bank account, this is called PAYE
  • This is the UKs tax, payments and customs authority
  • HMRC collect the money that pays for the UKs public services and helps families and individuals with targeted financial support
  • Cash in hand
  • Payment outside of PAYE
Self Employed
  • A person is self-employed if they run their business for themselves and take responsibility for its success or failure
  • Self-employed workers are not paid via PAYE, and they do not have the rights and responsibilities of an employee
  • A worker must tell HMRC if they think they have become self-employed
Although cash in hand is not illegal, you should ensure your employer follows the relevant rules as there are implications to this method.
Things to consider:
  • Ensure that your employer is paying your Income Tax and National Insurance contributions to HMRC.
  • When you accept cash, you are required to declare your income or paid cash on your annual tax return. If you fail to do this, you may be subject to penalties from HMRC. You will need to keep track of what you are working and earning to ensure you complete your tax return on time.
  • Tax returns are due by the end of the calendar year, or by January if you are sending HMRC a paper copy. Failure to do this on time will result in paying a penalty.
  • Other deductions can also include student loan repayments.
  • Ensure that your employer provides you with a payslip.
  • You are still entitled to all employment rights including workplace pension, holiday pay, sick pay and parental pay and leave. The rights are the same regardless of how you are paid.
  • If you and your employer do not declare to HMRC that you are in fact employed, then you could both face severe consequences.
Student Route Visa: If you are currently in the UK on a student route visa, you cannot work any jobs that offer CIH as this is classed as working as self-employed, as you are not paid via PAYE. Restrictions are included on your BRP (Biometric Residence Permit) or your online visa share code check.
For further detail please contact the international office - [email protected]
Working with ARU Temps:
  • Find temporary work that fits around your studies
  • ARU Temps are a PAYE employer and do not offer cash in hand jobs
  • Earn the Living Wage at ARU
  • You will need a UK bank account
  • You will need to apply for an NI number
  • For questions around your tax and NI contributions see our FAQs page
  • Volunteering opportunities can be found with our Students Union
ARU Temps Team