Dog walker wants cash in hand

Well it can be, yes. In theory. The simple truth is that is mostly isn't. At least not in 'cash only' establishments. We all know that. It's disengenuous to pretend otherwise. There is generally only one reason that anyone insists on, or prefers cash only payments in their business and it almost always involves something illegal. Either tax evasion, money laundering or benefit fraud. Bank transfers cost nothing on either side. Card transfers do cost usually around 1 or 1.5% to the seller. Cash is free to accept and to spend but not free to handle and manage, not in terms of the time it costs a business that takes a lot of it. And if you are regularly paying large amounts of cash into a personal account rather than a business account, you will be asked questions. Even as a business we regularly get phone calls from our bank where we have to justify why we take so much cash.

We take cash in our business because our customers like to use it, but it only accounts for around 20% of our takings. I am a strong believer that cash should always exist, but I also understand all the challenges it presents to banks, the police and HMRC in terms of it being used to prop up illegal activity.

It's actually a pain in the neck for us to manage the cash and what it takes us in time and faff to count it and bank it and constantly keep the till full of change isn't really worth the saving we make on card charges. It also leaves margins for error on our tills as well as the risk of passing counterfeit notes, or theft, either from the till or when we are taking the cash to the bank.

Any business will know that only accepting one method of payment, be that cash or card, is going to lose you a certain amount of custom when people realise they can't pay or don't want to pay via your preferred method. That's something that, as a business, you have to take a wider view on. Weigh up what it might cost you in lost sales versus the benefits. I've just outlined the benefits of being card only. What are the completely legal and above board benefits of cash only? Someone do enlighten me, because as a legitimate business owner I can't see any.

Given that virtually everybody these days does have a bank account, a phone and a bank card, it's very rare to find someone who simply cannot pay you by card or by instant bank transfer. Whereas with cash, it's extremely common for people to have no cash and no easy or immediate access to any. We have people pay for stuff on their phone or apple watch, they don't even bother carrying a card around anymore. They don't even have the option to quickly find an ATM.

Being asked for cash when you were not expecting it is a massive inconvenience for most people and many will shrug apologetically and walk away rather than buy something. Why do you think even Big Issue sellers are ready and waiting with their mobile card machines these days? They know it's the difference between a sale and no sale.

Businesses with a cash only polic know this. If they choose to do it anyway it means there is an ulterior motive that probably isn't entirely above board. I challenge anyone to persuade me otherwise.

This. After years of accepting payment by bank transfer my DS’s music teacher asked for cash at the start of this academic year precisely for this reason.

You don't pay for bank transfers to a business account

Or tell him you will in exchange for a receipt, if it's child maintenance related.

far more likely trying to stay under a UC threshold / not declaring for UC I would have thought

I'm a tutor. I accept both. Anyone I've had to chase has to pay upfront. No transfer no lesson. I'm fully booked. I cba with chasing. I move on to the next one.

I’m with you. I would presume he’s avoiding tax.

I pay my window cleaner by bank transfer yes. I wouldn’t use them otherwise.. It’s how professional businesses operate. I don’t work for HMRC but as a tax advisor I’m well aware that the tax evaded in these sorts of areas his HUGE and it’s down to all of us in society to work to close the gap with little things such as refusing to pay cash. Just like not dropping litter, or not parking on the zig zags outside primary school or reporting children you suspect are being abused. Be a responsible citizen.

Amazon don’t evade tax.

I have a small business and rarely get cash payments, it's a pain to go to the bank to pay it in and get charged for the privilege!!

only client who asked to pay in cash last year asked for a discount and was offended when I refused, stating the flights, fuel etc don't give discount so why would I?

Cash is normal. I pay my hairdresser and gardener in cash. My window cleaner prefers BACS. A yoga class I go to sometimes is cash only. It's not necessarily nefarious, a lot of businesses prefer it for reasons other than tax! I know my eyebrow lady has put her prices up to cover the additional charges of using sumup - not everyone feels they can pass that on to customers so they stay a cash business

I dont think there is automatically anything nefarious about it but I personally wouldnt do it.

Firstly, I never carry cash so to have to constantly find a working ATM that doesnt charge me a fee to withdraw cash would be difficult (most of them charge where I live).

Secondly, if there was ever a dispute about non payment, I would have no proof that I had paid - I would need to get a receipt every time which is a PITA for everyone.

I appreciate they prefer cash but I prefer not to use it so unless someone is making life easier for their customers then there are plenty of other dog walkers who will

Bank transfer does NOT cost the seller. Card transactions do.

I absolutely do have an idea of the reason actually. And that's my problem with it.

Some of my customers like to pay me cash because those who also use it for their businesses know I get charged on my SumUp transactions.
I never ask though, I say it’s either cash, card or bank transfer, totally their choice.

I hope those who think the dog walker is earning huge amounts of cash and hiding it from the tax man don’t buy from the likes of Amazon!

why does she need invoices?

do you work for hmrc?
why such judgement op

i would prefer to pay by bank transfer but i dont spose you pay him that much.
whatever is easiest for you
would you pay your window cleaner by bank transfer?

I’ve no idea what his reason is but actually neither do you. And in any case it’s irrelevant. He can set his terms, clients can make their choice.

No, you pay by whatever means the business/service provider accepts and gives the option for.

I would find paying cash an inconvenience as I'd have to make a special effort to go to an ATM. The dog walker is free to request cash but you are also free to decline and say you prefer paying him the usual way. If they have a problem with that find another dog walker.

I see the contrarians are out in force. Of course the most likely reason for asking for cash is to conceal earnings for some reason. In any case, the whole point of outsourcing things like cleaning and dog walking is to make my life easier so no way am I giving myself the extra job of going to get cash out. It’s a flat no.

I would not want to pay cash. If he insists, ask for invoices while you look for another dog walker.

What cash machine?

I'm not sure how I could have paid DD2's tutor in cash as I never saw her in person, she did one to one online tuition.

I would ask if I can carry paying as I do. It would be a pain in the arse to remember to have cash for them.