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Original poster

Why do all contractors want to be paid in cash?

136 replies

Jaggerdagger · 21/10/2022 09:31

Yet another contractor today has asked for cash to pay for a service. They are seemingly a legitimate business with a website and plenty of good reviews on Google. I never have cash on me so frankly it's a pain to have to walk 30 minutes to the nearest cash point, when I could do a bank transfer in seconds. If it's more than a couple of hundred pounds, I have to drive miles to go into branch to take the money out. They never advertise that they are cash only when I book their services, so I get caught out unprepared. I'm self employed myself, and have absolutely no problem with people paying me in cash, but equally have nothing to hide with my accounts, so happily accept bank transfers! It's nice to remain flexible with my clients! Just curious, really.

OP posts:
MrsKeats · 21/10/2022 09:32

To not pay tax

Original poster
Jaggerdagger · 21/10/2022 09:32

"All contractors" was a bit of a type-rush. I definitely should give some the benefit of the doubt... So let's say "some contractors"!

OP posts:
Original poster
Jaggerdagger · 21/10/2022 09:35

MrsKeats · 21/10/2022 09:32

To not pay tax

See, this is the obvious answer. But if a business is widely advertised on adverts are splashed about everywhere, wouldn't this be insanely risky not to?! I'm a sole trader and would never dream of risking it. I'm probably just naive...

Also, one person (end of tenancy cleaner) told me that I could pay him online, but if I gave him cash he wouldn't have to add on VAT.

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SharpLily · 21/10/2022 09:38

Tax is one reason but frankly it's probably due to having been ripped off too many times by too many people who promise to do a transfer, then nothing appears in the account. So you chase them up and nag them and it gets very tiresome. It's the same as 'the cheque is in the post' - 'oh yes, I did it yesterday, have you not received it? Maybe there's a problem with the bank!' 🙄

Ihaveamagicwand · 21/10/2022 09:41

If they ask to be paid in cash, ask for discount.

TootMootZoot · 21/10/2022 09:43

SharpLily · 21/10/2022 09:38

Tax is one reason but frankly it's probably due to having been ripped off too many times by too many people who promise to do a transfer, then nothing appears in the account. So you chase them up and nag them and it gets very tiresome. It's the same as 'the cheque is in the post' - 'oh yes, I did it yesterday, have you not received it? Maybe there's a problem with the bank!' 🙄

You can do a bank transfer in seconds. I never pay in cash but will transfer the cash by bank transfer immediately

MzHz · 21/10/2022 09:45

Ihaveamagicwand · 21/10/2022 09:41

If they ask to be paid in cash, ask for discount.

They literally did. Not adding tax.

I can’t believe people are this ignorant of how things do work. Not saying it’s right, but it’s happened for ever. Pay cash to avoid the tax.

youd have to be exceptionally sim not to understand why it’s being offered. it’s understandable- especially when inflation is so high, cost of living is so high.

Anydaynowonewouldhope · 21/10/2022 09:45

To avoid tax

i used to be all compliant and run around to banks to get cash

last time I said to the bloke I’m self employed and I pay all my taxes. I’m not helping you to avoid yours. If you give me the bank details I will transfernit right now in front of you or I’m not paying 🤷‍♀️

I think he was so shocked he didn’t know what to say so he gave me the details

Justlovedogs · 21/10/2022 09:46

SharpLily · 21/10/2022 09:38

Tax is one reason but frankly it's probably due to having been ripped off too many times by too many people who promise to do a transfer, then nothing appears in the account. So you chase them up and nag them and it gets very tiresome. It's the same as 'the cheque is in the post' - 'oh yes, I did it yesterday, have you not received it? Maybe there's a problem with the bank!' 🙄

Agree with this. Cash is instant and there in the hand. I've been the sole trader contractor waiting for a bank transfer. It can be very frustrating, especially when you've got other trades to pay. However, I tended to give clients the option and agree it in advance.

SalviaOfficinalis · 21/10/2022 09:46

We had one guy who told us (completely unprompted) before he started the job that when he finished he would not leave the house until we paid him.
He said that if we were doing bank transfer he wouldn’t leave until he saw it come into his account.

He’d had a bad experience before and sadly it’s probably quite common.

Meili04 · 21/10/2022 09:46

It's to avoid tax , it's why some takeaways will only accept cash.

JudgeRindersMinder · 21/10/2022 09:48

Unlike most of mn I’m happy to pay cash, it’s been going on so nice the dawn of time. I pay cash and what they do with it is between them and their accountant-I’m not their tax police!

cantkeepawayforever · 21/10/2022 09:49

Avoiding VAT. My reply is always ‘Oh, I’d better pay by bank transfer, my dh is an accountant and worries about doing things properly’ and watch them blench. Tbh, I always ask about payment methods upfront, as I feel that anyone dishonest enough to want to fiddle tax is not someone I can rely on for quality of work or to rectify any faults if they arise.

minipie · 21/10/2022 09:51

I won’t pay cash. I’m a lawyer and not up for assisting with tax fraud. If they are worried about payment (understandable) then they should get themselves a card machine and take a card payment there and then.

AlmostOver22 · 21/10/2022 09:52

Never pay a contractor in cash unless they provide receipts (which they won’t if it’s truly to avoid tax). If it goes wrong you can’t prove that you paid them or even sometimes that they did the job.

TheTeddyBears · 21/10/2022 09:54

It's always to avoid tax! I'm not saying that they don't pay any tax but he will def be claiming to earn a lot less than he actually is. I have a distant family member in the trade and he is happy to take either or for payment. I know he does get a lot cash jobs as always having to go to bank to put it in. I also know he claims to be earning a lot less than he does as it was a huge problem when he tried to buy a house!

Octomore · 21/10/2022 09:55

I avoid paying cash too. In my profession, knowingly facilitating tax evasion is a big no-no.

I also think that someone who fiddles the system in one way (tax) is more likely to be fiddling their customers or cutting corners. I prefer to employ honest tradespeople, who I can place more trust in.

cantkeepawayforever · 21/10/2022 09:55

Completely understand the worry about delay - joy of telephone / online banking is that you can do the transfer immediately and in front of them very quickly.

beachcitygirl · 21/10/2022 09:58

I would never ever ever pay cash. I will instantly transfer in front of them via phone app but I will
Not facilitate someone avoiding tax.
I pay mine.

Literally thieving bastards. And if someone is a thief from one person then they will thieve from you. Corner cutting, cheaper materials, pretending more needs done & so on.

No.

dontknowwhatisbest · 21/10/2022 09:59

No fucking way would I go out of my way to pay cash unless it had been agreed before the start of the job, and for a legitimate reason (not tax evasion).

Bank transfers are easy and instant. Like a PP said, I would simply refuse to pay them in cash.

Frogsalad · 21/10/2022 09:59

Aside from the obvious one, many of the contractors my business works with are openly shit with money. As a company we've bailed out people many times after we get a call on a Friday morning saying "can I borrow £X because I haven't been paid on time and can't pay the lads".
I've already had 2 guys this morning ask me when their weekly invoice is going to be paid today. They are skint.
There are people that will be avoid or not avoiding tax, but working pay to pay and cash in their hand is more useful to them than money being transferred to their bank.

dontknowwhatisbest · 21/10/2022 10:01

And I bet fucking loads of these tax dodging bastards are screwing over their kids with CMS payments as a direct result. Think how many posts you see on her from women whose exes are doing exactly this to reduce their maintence payments.

MrsKeats · 21/10/2022 10:02

Exactly dont
Would never pay cash partly for this reason.

beachcitygirl · 21/10/2022 10:02

@dontknowwhatisbest good point- well said.

Octomore · 21/10/2022 10:04

dontknowwhatisbest · 21/10/2022 10:01

And I bet fucking loads of these tax dodging bastards are screwing over their kids with CMS payments as a direct result. Think how many posts you see on her from women whose exes are doing exactly this to reduce their maintence payments.

Yes!

Dishonest, cheating people aren't just going to be doing it to the taxman. A liar will screw over anyone, including their kids.

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