Hairdresser asking me to pay in cash

If your hairdresser rents a chair rather than being directly employed by the salon, I can see why.
The government has recently started a new scheme for self employed who earn above a certain level called Making Tax Digital. It gives them a much closer look at what the self employed person earns and spends.
So I should imagine she’s asking for cash from some clients so she doesn’t have to record it.
Yes, it could be seen as dishonest, but I do the books for my self employed friend and let’s just say it’s scaring the horses. It’s a bit of a nightmare to deal with.
I have no problem paying cash. It takes a few minutes to withdraw it.
We are all getting so lazy and I include myself. I wanted to watch a film yesterday that had gone off a streaming channel. I have it on DVD and could literally not be arsed finding it and loading it.
£160 is a great price for your location and a great hairdresser who knows your hair is hard to find.

Card machine fees are 1% - so £1.60 on £160 , hardly huge.

It's clearly a tax dodge.

I dont mind at all. Card payment charges can ruin a small business.

I'm NW and my hairdresser only takes cash payments, ive been going to him for 20+ years. Also don't think £160 is bad for London, I pay £140

Aaaaaaaarrrggghhhh!!!!! How many times?!?! This is not true! Processing cash is just as expensive as processing card transactions. They're making a fool of you by influencing you to trot out their lies.

I was going to say the same thing.

Plus you’re potentially enabling them to stay within the income threshold that means they get additional benefits

And, you’re overpaying. The going rate in your area is the cost LESS tax (VAT and income tax).

So you’re a mug for thinking you’re paying her the same price as you would someone else. The difference as @HoskinsChoice points out is that the part of your payment that should be directed towards improving the public services you use and running the country … is instead going in her pocket. So it’s very much a you problem!!

It also costs to process cash (if it's done properly and legally). There is no cost differential in cash and card. Please listen read the various posts in this thread that say the same thing. You may be doing 'them a favour' but you are also likely to be supporting fraud and taking away money from the public services you use. You're doing them a favour but where is their favour to you? They are literally stealing money from you.

My hairdresser ( North west) only takes cash and did bank transfer until people forgot to pay. So that stopped. My hair cut is £30 so i don’t mind.

I love the idea that we'd need to know someone who works for a "financial firm" to know that banks make a profit.

Ask your special insider contact about cash handling fees. They also charge for them 😮

This! Using a card is expensive for a business and ultimately the customer as their prices have to cover this. Cash does not mean no taxes .

Some business banking accounts charge for lots of their services and smaller businesses often prefer cash because of it. Also it depends on how the staff are paid/employed in my hairdresser he’s quite happy to take card because the staff are employed and on a salary. But some hairdressers the are self employed and renting the space, it means a lot of work if people made paying by card to determine who’s money that is

Do you use the NHS? Do you have kids in state school? Do you walk in parks? Are your bins collected? Do you want your house fire to be put out? Do you want criminals to be put in prison? Do you want roads to drive on? Do you want a state pension? Do you want social care services to protect the vulnerable?

If the answer to any of those questions is 'yes' then it absolutely is your concern. You're a fool if you think supporting fraud is nobody else's concern. They are not only greedy, they are literally stealing money from public services.

It costs them for you to pay with a card. Do a small business a favour and pay in cash.

If I can help it, I avoid 'cash is king' businesses. I pay my taxes, I won't inconvenience myself so other people can avoid paying theirs.

I don't know what your area is like OP, but I wouldn't walk through the street with that much money in my pocket. Especially if thieves catch on to people using that particular machine to withdraw cut and colour sums of money

You walk by a cash machine but it’s an inconveniences? Either withdraw cash or find a new hairdresser.
Many many businesses are encouraging cash payments to reduce bank fees, it’s not always a tax dodge.

Of course they make money from it, do you expect service providers to do it for free? By that logic, the hairdresser in question should also cut hair for free because, 'trust me' they're making money from you too. What a weird argument!

9 grand for an extension, can he do mine??!!

As is processing cash if done legally. Your theory has been disproved time and time again, why do people keep trotting this out? If everything is been done properly, officially and legally, there is no cost difference between cash and card to the retailer.

We can't assume that they're fiddling tax but there is no other reason to specifically ask for cash, particularly when transactions are at the £100+ level.

I wouldn't touch them with a bargepole and I would happily explain why. For the reasons already mentioned - security, inconvenience and likelihood of being involved in tax avoidance.

So is this hairdresser doing a good job? Although the price seems high what would it be at other places in the area?

I vote with my feet as I hugely prefer to pay by card to manage my spending like a PP. also there’s barely any cash machines where I live and I have a 50% rate of the ATM eating my bank card and I would just rather not have the hassle.

Support local businesses by paying in cash.

I know someone who works for a financial firm - believe me, they make billions just from taking a tiny cut of all the card transactions.

This. Cash deposit fees are similar to card transaction fees. Refusing card payments Its often a way to either:

• avoid hitting the VAT registration threshold
• declare lower profits for tax, child maintenance or benefit purposes
• pay undocumented workers "off thd books" cash in hand.

I always pay cash where I go, the majority of customers do. They’ll accept card if you want to.

If they aren’t up front with their tax, that’s a them problem, not for me to even be concerned about.

My hair salon has been doing this since the start of the year, when the bank increased cheque processing charges for small business accounts. No alternatives. Prior to that, I'd paid him by cheque for 20 years because card processing fees were too high.

Your salon is probably trying to reduce their bank charges. They are not necessarily avoiding tax.

If you want to keep going and want to keep paying by card pay by debit card as these usually have a flat transaction fee unlikely credit cards that take a percentage. Amex takes the highest percentage and that is how they fund all the things they offer you.