How should I pay?

[superlambanana]

We are having an extension at the moment. Builder needs paying (less 5% at each stage) every four weeks. I'm assuming we'll do this by bank transfer as it's so much.

We've also asked the electrician who's doing the extension to rewire the rest of the house, for which he's charging us a reasonable £2k. He has said he'd like some of it in cash - is this normal? What method should I use to pay him the other bit? He doesn't seem in the least bit dodgy.

[Auntimatter]

Cheque.

[beachyhead]

Most of our builders give me their bank details and I transfer money. Seems the easiest way.

[peggyundercrackers]

depends how much the job is, for large amount cheque or bank transfer for smaller amount im happy to pay cash. when paying cash its normally been asked for because they want to buy building materials and dont want to be out of pocket or because they have bought them and they are out of pocket. for a small(ish) sum like 2k i would be happy to pay cash for that.

[Auntimatter]

How the other half live - £2k is not a small(ish) sum of cash to be carrying about!

[LondonGirl83]

When they ask for cash its normally to avoid paying VAT...

For large sums, bank transfer is easiest.

[LondonGirl83]

2k is not a large sum for building works. I think everyone would consider it a large amount of cash to walking around with otherwise :)

[superlambanana]

Sorry if I wasn't clear - the builder will be paid by bank transfer as it's large amounts (I wish it were only £2k!!). The £2k is for the electrician's rewire of the rest of the house. He's not vat registered so I'm confident he's not trying to avoid that - just wasn't sure if paying by cash was the done thing!

[peggyundercrackers]

His VAT position really isn't your concern, it's up to him to run his business as he sees fit. Although I'm sure someone will come along in a bit and tell you it is your concern and that your are cheating the taxpayer blah blah blah...

[peggyundercrackers]

Londongirl that's what I meant, for building work 2k isn't a smallish sum, yep I wouldn't expect people to be carrying 2k about but I do know a few people who carry that and more, why they do it I've no idea...

[Ziplex]

When asking for cash it IS'NT avoiding bloody tax/VAT!!
Get over it with that ffs, we ask for part cash, part BACS.
This is for the simple reason that we pay some of our suppliers in CASH and some of our lads get part cash ( again not avoiding any sort of tax as I do the bloody books!!) as we can get good deals...
No one is avoiding anything it is how the world used to work and still does!

[InsertUsernameHere]

Hi ziplex I'm going to ask what might be a stupid question so please be nice. Why is cash better than BACS? For example I can do a BACS transfer instantly and my fitter ( who is asking for cash) would have to wait several days for cash. One for me to get hold of it and then for me to be able to meet him. Surely he can turn a BACS payment into cash using an ATM. I was just wondering if there is something different ?charges that business bank account have. For me (as a person in the street) getting paid via BACS is easier (especially if I'm short and there are bills to be paid from my account). I appreciate that things might be different but I haven't worked out how.