Hmmm... There has to be a way around this. I'm all for avoiding taxes whenever possible, especially when there is little risk of being caught and prosecuted. I know people(cough) that make good money in their trade, on the 'side', away from official work. Cash only please. :p I believe it's a noble thing, and the essence of freedom.
Like I said, I was an idiot— had I known this was going to come back and bite me, I’d have at least inquired as to the possibility of doing this transaction off the books.
Live and learn.