Would you pay cash in hand to save a large amount of money?

[TattiePants]

We’re currently getting quotes for a new roof and the first two quotes came back yesterday. The first roofer has quoted between £19-£25k (depending on materials) for the main roof but that is on the insistence that we pay for it all in cash. He didn’t give me an on the books rate as he wouldn’t take the job if I wasn’t paying cash. Despite being cash in hand he’s still significantly higher than the second quote. We won’t be using him but even if he was cheaper, I still couldn’t bring myself to use him. Just wondering if other people would be prepared to save money (approx. £6k) by letting a tradesperson fiddle their tax.

No, I would report them to Hmrc

If they're prepared to break the law to fiddle their tax, how likely is it that they'll do a cr*p job to make money on that too??

No, you'll have no proper invoice, no guarantee, no insurance and no comeback. And it's unlikely that they will have a proper waste licence, and they'll dump all the rubbish in some country lay-by.

And if you know that it's to evade tax, then you too are complicit and HMRC and Customs can come after you for it.

Don't do it.

@Mirrorxx

No, I would report them to Hmrc

Asking for cash is not breaking any laws

No - we've refused to pay cash in hand in a similar situation (as I don't like helping people to commit fraud).

I wouldn’t assume it’s to dodge tax. There would be hefty fees if you paid by credit card. Did he ask you for a bag of cash or is cheque or bank transfer fine? The former, ok likely dodgy, the latter not so much.

If he could provide insurance certificates, references, invoices, warranties etc, then what’s the problem?

No. It’s a sign of a lack of character and trustworthiness.You’re leaving yourself very open to being ripped off with no comeback.

If someone who as a sole trader did a small regular job like window washing or grass cutting or cleaning asked for cash I’d be less worried- the guarantee of good work there is continued business. And they are more likely to be under the VAT threshold anyway.

Not for something that big I wouldn't
For small jobs I sometimes do as it saves me the vat , yes it may be wrong but the governments screw me over daily

Actually he said pay in cash did he actually say and not give an invoice ? As you can request cash and still be doing it legit

I’m absolutely not doing it - I’m a Chartered Accountant so even if I wanted to I wouldn’t risk it. I am tempted to report them although I wouldn’t do it for a while until they’ve had time to quote for a few more jobs. The frustrating thing is, he’s really well known in the area for doing an excellent job and is booked up about a year in advance (hence the high prices). I know 4 people who’ve used him over the last 15 years and highly recommended him. One friend admitted last night that he’d paid cash but I’d be shocked if two of my elderly, very responsible neighbours have paid cash.

@HerRoyalNotness no he made it very clear it was ‘paper money’ or nothing.

I wouldn’t because I’d assume they would make savings elsewhere. If it was explicit they wanted to avoid declaring it/vat. If it’s just cash only I don’t care , I’m not responsible for their tax affairs. And I really can’t see HMRC investigating a customer !

Not for a roof, I wouldn't. They'll probably roof your house with cardboard as they'll discover just how much more cheaper a material it is than other roofing materials.

@TattiePants as an accountant you know though that just because someone paid cash doesn't make it dodgy as long as their is an invoice
Unusual for a trader to ask for that much cash and do lots of cash jobs and be so well known , and especially if he knew you were an accountant

Hmm. I have a lot of questions.

Does his lower quote include scaffolding? Pavements licences if they are needed? What will he put in place of a night if he thinks there is rain due? Is he a substantive business or a potential fly by night? Cash up front or on completion? Or in increments?

Not on a job that size. Get more quotes in. Have any of them mentioned buildings regs? To change a whole roof you should have building regs to make sure they are doing the job upto spec and you wont need to change anything in the future if you were to sell.

Also, the SE Covid support - I gather it's being accounted for in this year's earnings. Perhaps he's trying to lower his earnings this year by a substantial amount. I'm aware of a couple of tradies doing that, but not to this value.

We paid a good friend cash to do our kitchen. He took a week off his usual carpentry work - unpaid as SE - and did this instead.

No. And I certainly wouldn't want to risk anything with a roof.

You should also be aware that should you have issues with the roof and need to take him to court it would be thrown out on the basis that it was an "illegal" contract.

@worriedatthemoment I assume there would be an invoice at the end (didn’t ask as I’d already decided I wouldn’t be using him) but if his main business is Joe Bloggs roofing and he issues me an invoice from Joe A Bloggs roofing I wouldn’t know it wasn’t a proper invoice. If a customer then queried the invoice eg lack of VAT number, they’re probably not going to report him after handing over a bag full of £100s.

For things such as a roof, kitchen, heating, electrics, plumbing etc where I need a guaranty/warranty, requiring certificates etc - no way. Not even for painting outside. Besides the legal stuff, I’d want t be sure they had proper insurance i case they botched a job or anyone got injured.

I would though for small handy man jobs, small gardening things and what not.

You should also be aware that should you have issues with the roof and need to take him to court it would be thrown out on the basis that it was an "illegal" contract

This is bollocks.

Seriously? You would report them? Just don't give them the job if you feel that strongly. But don't be a grass.

I have no issue with paying in cash as long as I have a proper contract, invoice etc. A Tradesmans tax etc is his responsibility not mine.
I am surprised an Accountant doesn’t know that being paid cash isn’t dodgy in isolation but rather if it’s accompanied by other dubious practices.

@PinkFootstool both quotes included exactly the same tiles (two options from each roofer), scaffolding, waste removal etc. Both roofers have done work for my neighbours s as I’d have been highly recommended.