Private tutor KS2 cash only

[pilates]

My child's tutor has requested cash payment only. Is this normal? I know it's nice to get a bit of cash now and then but it's not always convenient to remember to go to the cash point. What do you think?

[LadyMaryLikesCake]

Probably doing it because they are avoiding the tax, 'off the books' so to speak. I'd find someone else.

[ImperialBlether]

No, it's not that, it's because cheques have to be taken to the bank. If your tutor is a full time teacher she probably finds it difficult to have time to get to the bank. Also, cheques bounce and cause bad feeling. When cheques are written, it's not unusual to be asked to pay them in next week instead of this as there isn't enough money this week, etc etc.

Don't be so suspicious!

[pilates]

Yes that's what I thought. The thing is she has been doing it for years, at least 10 that I know of. That is one hell of a lot of undeclared money. When I gave her a cheque the first time she said "oh that's the first time I have been given a cheque".

[LadyMaryLikesCake]

You can do a bank transfer with your phone now days, why not ask for this?

I'm always suspicious.

[pilates]

She is a retired teacher BTW

[LadyMaryLikesCake]

Hmm. No idea. Maybe ask her to set up a bank transfer as you're time short and it's a pain to remember to go to the cash point?

[MirandaWest]

Just because someone takes cash doesn't automatically mean they aren't paying tax on their earnings .

Doing a bank transfer would be easier though.

[pilates]

I haven't a problem with giving cash occasionly but just felt a bit miffed that she only wants cash. So if I ask to do a bank transfer and she declines then what?

[ImperialBlether]

Why don't you just take the cash out for the month of lessons and keep it in an envelope?

Everyone pays cash for lessons. It doesn't mean it's not declared.

[LadyMaryLikesCake]

Sorry for assuming it was probably this, I was wrong. I'm sure there's other reasons, especially as she's been tutoring for so long.

Ask her about a bank transfer. It can be a pain remembering to get the cash out.

[MagratGarlik]

Clients I tutor for pay by a mixture of cash, cheque or PayPal. To be honest, sometimes some people do pay after the expected date and it is a pain chasing late payers. In these cases I ask for cash only. Is is possible she has had problems with this before and therefore now requests cash only?

Btw, cash payments are not always people avoiding tax. I always give receipts to cash payers and all the money I am paid, cash, cheque or otherwise is logged and declared to the tax-man. It is not worth my while to blemish my clean CRB with some tax-avoidance issue because this would cost me more in the long run than paying the tax I owe.

[tess73]

She can earn almost £10k without being liable for tax, plus can offset costs at home as her workplace so I doubt tax avoidance is the reason!
More likely fed up of cheques bouncing or chasing/keeping track of payments. Far easier if paid cash per session but agree it is a pain to remember.

[tryingreallytrying]

Chasing up bouncing cheques is embarrassing plus causes cash flow problems whilst waiting for cheques to be paid in and clear.

Don't blame her.

[Weegiemum]

I tutor (secondary for exams). All the families I use pay monthly by bank transfer.

[TalkinPeace]

tess
If she is a retired teacher, her pension will be using up her tax free allowance so every penny she makes on tutoring will be taxable

I'd pay by FPS to be honest

[missinglalaland]

She could be tax dodging, but she could also be looking to avoid the hassle of checks like others have said.

Perhaps a monthly check would be more convenient, or a bank transfer?

[missinglalaland]

cheques

[Theconstantlygardening]

It'a generally 'accepted' that anyone who is s/e and asks for cash ONLY is trying to avoid paying tax or VAT.
However it's rather naive of them ( her ) because all it takes it one pissed off parent to make a call to HMRC. Easy peasy job done.

I'm s/e and clients ask which kind of payment I prefer. I always say it's entirely up to them- cash, cheque or BACS.

In your case I'd suggest you offer to pay for half a term in advance by cheque or Bank Transfer. She ought to give you a receipt too for money taken - by any form of payment.

[Theconstantlygardening]

Tess- that is not correct- she can earn around £8K but she ought to be paying NI contributions which kick in at a low weekly earnings rate.
Anyone earning anything has to declare it for this reason. And if she also has a pension her earnings from tutoring will be added to that which will then be taxed at 20% ( or higher depending on her pension.)

[BellBottomBlues]

If she has a business account there is a charge to pay in anything. I prefer cash as it means I can spend some of it without having to got to the effort of finding a branch that hasn't been closed down, queueing up behind people who haven't filled in a paying in slip and paying HSBC a percentage of the value.

I don't take cheques either (self-employed, not a tutor) not surprisingly.

[TalkinPeace]

bank with the co op through the fsb = no charges
santader = no charges
(limited company accounts)

[Soveryupset]

I don't like paying anyone cash to be honest as there is no trace or trail both ways, also I live in the sticks and access to a cash machine is miles away, plus I don't like carrying cash around with me.

I also dislike the feeling that someone maybe evading the tax man, a friend of mine who paid someone cash had a knock on the door from HRMC one morning and they interviewed her. Can do without the hassle.

I always offer to pay one term in advance by bank transfer and this has never been a problem. I have paid cash once or twice when it was an additional lesson or similar, but I don't like doing it otherwise.

[TamerB]

Just tell her you don't have cash and do bank transfer.