Undeclared work: the risks of hiring tradespeople cash in hand

What counts as undeclared work?

Undeclared work is work carried out without the income being reported to Skatteverket, so that taxes and contributions are not paid. Typical signs are that you pay cash without a receipt, that there is no invoice, or that you pay a private individual instead of a company with F-tax.

Hard to enforce your rights in practice

Without a contract, quote and receipt it is very difficult to show what you agreed, what you paid and who carried out the work. Even if you may in theory have rights, in practice you are often left with no way to complain, demand a remedy or get your money back. It is also unlikely that you will be able to pursue a dispute at Allmänna reklamationsnämnden or in court without documentation.

No ROT or RUT deduction

Undeclared work gives no ROT or RUT deduction. The deduction requires the work to be carried out by a company with F-tax and the payment to be made electronically. The ROT deduction is 30 per cent and the RUT deduction 50 per cent of the labour cost, so the difference compared with a cash-in-hand price is often smaller than people think.

Insurance may let you down

People who work cash in hand rarely have liability insurance that applies to the job. If water damage or a fire occurs, it can be difficult to get compensation. Even your own home or house insurance may question a claim if the work was not done professionally or by an authorised person, for example in the case of electrical work or wet rooms. Always check your terms.

Qualifications and safety

Some work requires authorisation, for example electrical installations, which must be carried out by a company registered with Elsäkerhetsverket. Undeclared workers can rarely provide the certificates and documentation that are required, such as self-inspection records or wet-room certificates. This can cause problems both for safety and when you come to sell your home.

Tax law risks

Carrying out undeclared work is a tax offence for the person who conceals the income. Even the buyer of undeclared work may in some cases risk liability, and anyone who wrongly receives a ROT or RUT deduction may have to pay it back. Undeclared work also creates unfair competition for reputable companies and can be linked to exploitation of workers.

When something goes wrong after an undeclared job

Imagine that a bathroom renovation done cash in hand starts leaking after a year. The moisture has spread into the wall and the floor structure. Without a contract and receipt you cannot show who did the job or what was agreed. The person who did the work may not answer the phone, and there is no company or insurer to turn to. Your own insurance may also question the claim if the waterproofing was not done according to industry rules.

The result may be that you yourself have to pay both to tear out and redo the work and to repair the consequential damage, which can cost many times more than you saved on the cash price. The same applies to electrical work, where faults can lead to fire and where there may be no documentation showing that the installation is safe.

How to find a legitimate alternative

Request quotes from several companies with F-tax and compare the price after the ROT or RUT deduction. On Fixtorget, the companies' organisation numbers, F-tax and VAT registration have been checked before they can contact you. Posting a job is free, and you receive a cost specification to compare.

Frequently asked questions