AIBU to be so sick of tradespeople/ cleaners asking for cash in hand?

Yes, this. While OPs cleaner does sound like a benefit fraud/tax avoidance, there are reasons other than tax avoidance why a sole trader/small business might prefer cash. Card transactions cost a small business 2% upwards per transaction and thats alot to loose. I am a sole trader and I don't have a card machine so its either bank transfer, paypal at over 2%, or cash. I don't like my customers being all "nudge nudge, wink wink" with me because they are giving me cash, and I declare it all. The price remains the same too!

Can you justify why you automatically assume cash payment is a tax dodge? Lots of people seem to think this even when the price is the same! How or when did using cash become such a dirty thing? It’s bonkers.

In what way? Cash is legal tender. As long as there is a record of it (invoice) how would it affect your insurance?

I’m in the South East and we pay £20. It’s fairly standard I believe.

For me it depends- £20 in cash to the window cleaner is very different to £200 or even £2000 in cash to a tradesman.

I have sympathy for tradespeople though , and people should remember that the majority of tax not being paid is by huge multi billion revenue companies, not your local plasterer / cleaner. What really annoys me is this state sanctioned tax evasion.

This, I am a sole trader and never had business account. I don't even think you need a separate personal account if you keep all the records you need.

Exactly. It's not just tax avoidance and child maintenance avoidance but also by keeping their claimed income as artificially low, a lot of people can claim benefits they otherwise wouldn't be entitled to.

A lot of people here are also deliberately conflating your local lovely fish n' chips shop preferring cash over card to avoid the card transaction fee on each order for a card payment (happy to give cash over in this situation if I have it) with seasoned tradesmen asking for cash for very large amounts. Above all else, paying by card or bank transfer gives you paper trails, rights to raise disputes or claim back costs for undelivered goods or services.

Can the (currently) 20% explain why it’s okay to dodge paying tax and NI?

Years ago I had a builder suggest I pay £25k in cash for a loft conversion, I can’t remember what discount he was suggesting. I said yes because I was a bit bewildered and naive. Later thankfully said no as realised he was a lunatic and his business website was using photographs from other companies. I’ll give cash if requested for smaller jobs, it’s up to them to sort out their morals around tax.

Why?

The older people I know take a very positive view of using cash.

Many people have a side hustle and see their taxes being wasted on perks for corrupt MPs, vanity projects, overseas aid and asylum seekers. It salves their conscience to withhold part of their income from sucking off the tax man. The days of a welfare state funded by taxing labour are numbered anyway, although I doubt I will see the end in my lifetime. We have an ageing population (who have more than paid their share) a falling birth rate, and a generation of young people who cannot find work (thanks Rachel from Accounts) Therefore an ever diminishing tax base. The system cannot be fixed with the tools we currently have at hand.

Chinese takeaways near me do not take card payments so I avoid those as well. It's so obviously a tax dodge.

I had a builder client he was paying me for my service and wanted to pay cash in hand to avoid VAT. Err no. He had several adult kids all on benefits. No wonder the economy is stuffed.

I have put that you are unreasonable. Because many trades do take bank transfer and you are obviously going for cheaper rates, find reputable firms and pay the correct rates for the work. The ball is in your court to ask at the first phone call if they take bank transfers as that’s how you want to pay. Then they will give you the relevant rate for that work including their margins for tax, insurance etc.

So you are then paying his tax plus extras? Nice work if he can get it!

I know this isn't the point of the thread, but £21/hour? That's loads!

Pretty agist comments and entirely untrue in my experience. The older people I know take a dim view of tax evasion but so do those impacted by loss of childcare assistance or by scamming ex partners who don’t pay enough maintenance.

It’s up to the tradesperson to accommodate the customer. If you want me to pay cash so you can not declare it that’s your business how you submit your SA return, but you’ll have to incentivise it for me for my inconvenience by taking off some of the 20% you’ll save on tax as it’s easiest for me to pay by bank transfer.

Its swings and roundabouts though because these people might get away with paying less tax but then find themselves unable to get a decent mortgage

But £200 off is still less, not more?

I know someone who prefers to be paid cash because she is in a financially controlling relationship. I know another who struggles with budgeting/spending and finds it easier with cash. Many older people prefer cash. The list goes on and on.

Yeah i had a relative who used to have a massive bee in his bonnet about this re self employed having it easy and avoiding tax.
I used to think "then why didnt you go self employed instead of sitting in your cushy academia job for which you were under qualified for 30 years you lazy fuck"!
Its normally entitled salaried boomers who have an issue with this

I agree with you OP entirely.

People’s willingness to be complicit in tax evasion also fuels illegal immigration, be that a cheap building job, cleaning or nails. We make the UK more attractive because there’s plenty of work at an unrealistically low price.

I also don’t think people realise there’s no comeback if there is a problem either. An acquaintance’s nanny stole from the family and because it was all “cash in hand”, they didn’t feel able to report it or chase it too hard. All their childcare was fully legit after that.

You can avoid the people who ask for this or else pay the whole amount by bank transfer. Or shop them to HMRC if you want- I never have. I hate it too.