What if it’s not up to standard?
It’s very hard to go back to the tradesperson if the work wasn’t of the quality you expect.
If you don’t have a quote, invoice and receipt it can be hard to prove the work was even completed by the tradesperson you used, says Warwick Quin, CEO of the Registered Master Builders Federation.
It’s hurting the honest folk
“It’s not fair on those legitimate companies that are doing everything right, paying their people correctly, paying their tax, and paying their way,” Quin says.
It’s also hurting other New Zealanders. Each dollar that isn’t taxed is money that can’t be spent by the government on schools, hospitals and social services and more.
It can affect your insurance
If the work done by the tradesperson fails and it hasn’t followed correct consenting processes then it may not be covered by your insurance.
A $500 saving now, could cost you $5,000 down the track.
What if you (the tradie) get caught?
Serious cases can result in community service or jail time, according to Raju Budhia from Inland Revenue.
It’s up to the tradesperson to declare their income to the IRD and make an honest tax return. But the IRD hopes people will help the tradesperson by declining cash jobs.
“It’s about citizens wanting to do the right thing,” Budhia says.