To not want to pay cleaner in cash?

Always pay the cleaner in cash, also my hairdresser and the tutor for my daughter and often workmen especially for small jobs. I don’t ask them about the tax they pay, that’s up to them.

perfectly normal to pay in cash. I should think she’s not earning much over the threshold for paying tax anyway. Don’t be an arse about it.

Of course there are. You just don't agree with them.

As PP have said - maybe she's in her overdraft and doesn't "see" the money as it's eaten up by bank charges.
Maybe her DH takes a percentage of her earnings.
Maybe she has debts to pay that can't be taken if the money isn't in her account.

All legitimate reasons for asking for cash that don't involve fiddling the tax man and that would allow her to keep more of her earrnings.

OP, you should do what matters to you and aligns with your personal values.

You feel strongly that everyone should pay tax and you're worried about benefit fraud, so you should probably refuse to pay her in cash.

I couldn't care less personally so I would help her out and give her the cash.

Oh absolutely, I agree.

But most people with low earnings are never going to be inspected by HMRC simply because it's not worth their bother.

There aren’t lots of valid reasons (bank charges is nonsense - easy to get an account that doesn’t charge). By far the most likely reason in any given situation of a sole trader asking for cash is to avoid declaring earnings.

Struggling to follow your point about her residence status but sounds like you agree with me.

Yes of course bank transfer doesn't = legitimate, and cash in hand doesn't = illegitimate.

But if HMRC (or an accountant) ask to inspect your accounts it is, obviously, easier to hide income which is a few tenners in your pocket versus a regular transfer into your account shown on your statement. Surely no-one can disagree with that very obvious point.

I'm not saying it's illegal? I was just pointing out you can have a business account with a business name.

I’m a sole trader and my “business” account is just a bog standard current account in my name. Perfectly legal. In the real world no one has ever questioned this. I declare all my income.

Can you quote where OP says in her original post about the cleaner using a personal account? I can’t see that anywhere on the original post

As PP have said, there are lots of reasons why paying in cash could make someone better off. They don't all mean the cleaner is fiddling her taxes.

Ultimately the cleaner is free to ask for cash and the OP is free to say no and to find another cleaner if she's not happy with that.

That's not true - I have a business account and the PAYEE name is the name of my business.

No paying by bank transfer doesn’t mean someone is legit but it’s traceable so far more likely.

And I think it actually is op’s business when her cleaner has asked to be paid in cash so that she’s better off. The reason for that is very likely to be tax evasion so op is well within her rights to be uncomfortable about it and unwilling to be complicit.

Also, you can’t tell if an account is personal or business if it’s a sole trader, it’ll just be in their own name either way

People assume that by ‘paying cash’ means she won’t be declaring her income and therefore not paying tax. It might be that she lives in her overdraft and doesn’t see the money or perhaps her husband takes out the money before she can. If you are able to, pay in cash and ask for a receipt.

Complex tax reporting, lack of benefits such as sick pay and pensions, what about times of crisis? The pandemic for example how much financial assistance did the government give to support the self employed? Lower earning self employed have a harder time accessing benefits like UC

I wasn't really making one, just making a statement.

I'm not. Never claimed to.
It's in response to the poster who said that paying in cash always triggers investigation from HMRC as grounds for fraud

Yeah, I guess she could. I’m not sure what your point to me is?

She may not be working legally, which is a whole other kettle of fish.

I guess my point is that paying by bank transfer isn't a foolproof way of ensuring someone is paying their taxes, just like paying in cash isn't always a way of helping someone fiddle the tax man.

Both are legitimate ways of doing business and both can be abused.

Then she can find a new cleaner if she no longer trusts her, can't she?

Sounds like the OP trusted her fine until she asked to be paid cash to save money.

I was referring to her being paid into a personal account.

That was NOT mentioned in her OP.

Caffè Nero aren’t going to be under-declaring their earnings because of customers paying in cash 🙄. Why are you trying to compare large companies to sole traders?

Yes of course. You can come on holiday etc. But I would be surprised* if you could have a legal status which allowed you to work but not to have a bank account.

*not impossible that I'm wrong

I did want to engage with this thread seriously but I’m struggling, I’m still like this 🤯🤣🤯🤣 over the ‘paying for things in Tesco vouchers’ comment 🤣

Ok, I used to be a solo cleaner quite some time ago and ran all my business income through my personal account, after a few years of trading when paying in some clients cheques, the bank told me I could no longer use my personal account and had to set up a business account with them which had fees, so I did! But it cost me banking fees