I am using a sub-contractor for some work, I have told him how I will need an invoice from him so I can put it in as an expense on my tax return which he said is fine but he has asked for it in cash. It got me wondering, if he doesn't file a return at the end of the year am I liable at all? It doesn't matter to me how I pay him and I'd rather keep him happy but if he didn't declare it and it leaves me liable then I will pay by BACS.
I can't see how I would be responsible, just wanted to check though. Most the info on HMRC is about CIS and this isn't construction.