Pay Handyman £2,000 in cash for a £500 discount?

[OliveSeaTurtle]

We're just in the process of having the damp fixed in one of our rooms, it cost a whopping £2,500 + £500 VAT = £3,000.

The damp proofer has done 1 of 3 days so far & I pay on the third day, he just rang me and said: "If you pay in cash, I'll give you a £500 discount, the 20 year guarantee will still be in place don't worry", I said I'd think about it and get back to him.

Saving £500 would mean a lot at the moment but am I fool to even consider it?

How can the 20 year guarantee (which is crucial incase it comes back immediately), be in place if there's no bank transfer of my money?

Has anyone else ever encountered anything similar? I'm inclined to decline the offer but DP is interested if it means saving £500.

I wouldn't.

I don't know exactly what it is I'd be afraid of, but I wouldn't.

Also, presumably he's doing it so he doesn't have to declare it or pay tax, and that definitely sits wrong with me.

I’d say you’ll happily pay cash - but only 2000.

I suppose he could still certify the work giving you a guarantee, regardless of how much you paid.

I’d be inclined to consider whether it’s appropriate and fair for your builder to work and not pay any tax (which is what he’s suggesting? Ie Cash not going through the books) and whether you want to be complicit in this or not?

That's VAT fraud/tax evasion. www.gov.uk/report-vat-fraud (not suggesting you go down the route of reporting him, but the page has some useful information).

You'll probably not get a receipt to guarantee the work, even though he says he'll guarantee it. What about the professional body that underwrites it?

Personally, I'd decline.

Yes of course it’s up to him to do his tax return not you. Of course, you don’t actually know what’s going on with this tax, it’s just a cash discount. Common all over

Btw oP your guarantee literally has nothing to do with the payment. He could do it for free and you’d still get your guarantee.

Yep I would.

Even if he’s not declaring it personally that’s not your concern. You’re not his moral guardian.

And more fool anyone who wouldn’t tbh. Nothing is going to happen to you. It’s not illegal to pay in cash.

I would. I pay for things in shops in cash, before banks came about everyone paid in cash. As long as he gives you confirmation of the guarantee it will be fine, you're not responsible for his taxes.

Loads of people pay in cash, what he does with tax etc is his problem not yours, your guarantee would still be in place, ask for the guarantee on a headed business piece of paper.

He would still have to declare to tax department , just not to VAT department as you won't be paying the VAT.

So we're all happy for businesses to avoid paying taxes, right? Or not...

He would still have to declare to tax department , just not to VAT department as you won't be paying the VAT.

He can't just choose not to charge VAT!

Yep I would

I'm blaming lack of sleep for my stupidity

Please don't do this. We learnt our lesson, anyone who wants cash and is available at short notice is not good to work with.

We went to court and finally won but it was a hard lesson to learn.

I’m all about the little man tbh bombardier. Up the revolution!

I'm not sure that I believe a single one of you saying you'd decline on the basis of not agreeing that the builder gets this one job tax free.....

I wouldn't pay cash. I don't care if you don't believe me. I have clients offering to pay me in cash for a discount. I'll take cash but no discount as I declare every penny.

Who is providing the guarantee?

Is it the tradesman himself? If so you've no idea how long he'll be in business to honour it anyway, that would be the concern for me not the method of payment. Also the guarantee isn't dependent on how much you pay is it?

You all have no idea if he's going to be putting the money through his books and that's his problem, buyers don't have to worry about whether sellers are declaring all their income to the taxman as far as I know.

£500 is a big saving. Personally I'd do it as long as you get a receipt to confirm you've paid (if there's no bank transfer/cheque he could come back at some point and say you never paid him) and get the proper guarantees.

If he wants to take the risk of getting caught, let him, I don't see that as your problem.

My husband takes cash. He also declares every penny but it’s easier for him to deal in cash as he gets it straight away. Otherwise the ‘cheque is in the post’ for months and months. He also offers a discount for cash for the same reasons. There’s nothing dodgy about it. He works for really wealthy clients and they always seem to be happy to pay in cash.

I guess that's your word against the tax mans as no would know how much cash you'd taken.

Well if you do make sure you get a receipt. I would also be inclined to confirm it by text. Otherwise he can just turn around and say you didn’t pay if you try to invoke the garuntee

But any guarantee will be dependent on evidence the specific work was actually done, and on a certain date. Which is only proven by invoice of the specific job and proof of payment made for that specific job....IMHO