how to avoid tax evasion with a cash only business?

HMRC are not daft. They can easily work out the gross profit on your sandwiches through your receipts of food purchased. They are experts in this. My brother in law was a VAT Inspector and told me how it was done. Just carry one with what you are doing, sounds OK to me.

UK

Cash Businesses And Tax Evasion

At this scale of business what you are doing sounds fine. As businesses get bigger the tax man looks at statistics like your gross profit percentage and try to break it down further but what you are doing is fine. As long as you do the right thing, record what you take, how you spend it - either on more stock, keeping the receipts, bank it, as shown on yr bank statements or keep it as cash balance, whoever does your accounts will be able to account for it.

Dont forget to make a claim for expenses such as your travel to wherever you work out of, if applicable. Also the cost of all your incidental equipment - when you buy new knives, chopping boards, packaging etc, keep all the receipts. It will all reduce yr profit and hence any tax payable. Whatever you buy, if it relates to your work, ask for a receipt always and later scribble on whatever you bought if it isnt clear on the chitty.

my husband runs a snack delivery businesses to small workplaces and what you are doing is fine

his sales are all cash

He records the sales to each business place on a daily then weekly total

but obviously his expenses include -

stock, shrinkage ( eg out of date and damaged items), fuel, van expenses, and more

Just keep good accounts, all the receipts and you will be fine

Your stock purchases will show up as an overage if there was a large discrepancy

eg your stock purchases will match your sales to a large extent

Please don't worry about it as what you are doing is absolutely fine

just make sure you take into account ALL the things which are legitimate expenses

my husband works from home, keeps his stock in a large garage, so does take into account

a small lighting and heating amount, for when he is packing and unpacking stock

You still don't owe any tax on selling that car. Your basis in a gift is the lesser of the donor's basis (what they paid for it) or the fair market value when they gave it to you. Even if you sold it immediately there would be no taxable profit. Yes, some cheats get by for a while, but most are caught in the end. Once the penalties and interest have been added to the tax, it's not unusual for the debt to be several times what it would have been had they paid the taxes on time.