The hidden economy has generally been understood as an economy that uses cash to avoid leaving a record of transactions. Recently the decline in the use of cash within the UK economy has been highlighted as consumers and businesses use other methods of payment. This may have implications for methods of tackling tax evasion and the hidden economy.
On 25 November 2015 the UK government issued a document, available on the UK government website, calling for evidence from interested parties on the implications for tax compliance of this trend away from cash. Responses are invited from organizations that regularly handle cash including businesses, individuals, retailers and the financial sector. The closing date for comments is 27 January 2016.
