Can a tradesperson insist on being paid in cash?

[LegoTherapy]

They have been found via Checkatrade but I can't find anything about this on their website. The job is around £500 and they have asked to be paid in cash. I'm reluctant not to have a proveable payment history after being burnt with the previous tradespeople. I am using checkatrade to try and avoid cowboys. Do I have to pay cash? TIA.

@MrsRobinsonsHandprints sole traders don't need business accounts, you can just use your current account, which is free.

I got a cowboy from Checkatrade. I wrote a bad review and they didn't publish it.

It against T&C's for most banks to use a personal account for a business. Of course on smaller scale it doesn't matter but even sole traders should have a business bank account.

I would suggest that a person quote £500 isn't a small business.

But anyway it is clear now that he was doing it to avoid tax/CMS. I know there is a lot of support today paying cash in hand on MN, but equally everyone on MN wants a functional NHS.

I certainly wouldn't use a professional that didn't have a business bank account, that didn't accept BACs if I wanted any come back. I also ask for proof of insurance.

But then I volunteer with an organisation similar to the CAB- it is dreadful what people get away with and how little is done to stop rouge traders.

We have paid cash for jobs and sent it to different bank accounts. It means they don’t pay VAT. I don’t feel comfortable with it though.

We used Checkatrade for roof works and had one guy get really aggressive with me on the phone when I tried to cancel his appointment for a quote - not last minute either. Apparently, that wasn’t how he worked and we had already agreed to use his services regardless. 🤨

@MrsRobinsonsHandprints there's a difference between a business and a sole trader - they're not the same thing.

Sole traders don't need to use specific business accounts, but many choose to do so to separate their finances.

Here:

https://www.moneysavingexpert.com/banking/business-bank-account/

It says on his profile that he accepts bank transfers so I was surprised that he was asking for cash. I hate dishonesty😡

There you go, he’s got no leg to stand on. Screenshot it.

No they don't, but banks have their own rules on banking business money and limits per month/year. This is because they are a business and they want to make money out of you.

Most sole traders don't do anything near to what would flag up to a bank so would never be an issue. But it is something to be aware of.

Has he done the work?

If so do you have the invoice in writing?

Yes, they can insist they are paid in cash.

Up to you then whether you wish to proceed or not.

You can always ask for a receipt.

If it's a bank business account it costs money.

He came and priced up the job a few days ago and when I asked for the details of when he could do it and if he wanted a deposit he said cash but no deposit. He didn't measure anything up, didn't communicate about payment until I asked, didn't state his start time or how long it would take, he just sent the price. His reviews are good but I've learnt that doesn't necessarily mean anything .

It’s not ‘sorry taxman’, it's ‘sorry taxpayers’.

A legal business doesn't want cash. Aye OK.

Where I am most folk prefer to pay in cash for some reason. Its not my dhs request. He does push for bank transfer for materials though.

OP, you don't need to use him but he should provide a receipt regardless of the payment method.

I'd push back and say its 20% of 500 if he's trying to evade tax.

With cost of living etc now, it doesn't surprise me they are asking for cash...I don't condone it but I understand it. Anything over £1000 I'd refuse to pay in cash.

I've never met a self-employed person who didn't do under the counter side deals for cash!

It costs more actual money for a business to bank cash.
It costs more actual time to go to the bank and bank it (and it isn't waiting in line. It is driving to the bank/post office, parking, waiting, paying it in, driving back to work etc)

Bacs is easy. Cards machine is easy. Both have charges but less than cash in most instances (and less time)

Folk often think by paying in cash they get it cheaper, but a legitimate business the cost is the same.

To be clear I am not saying accepting cash means not legitimate.

I would refuse personally. I'd offer bank transfer and receipt. Otherwise you have no proof of payment.

Oh jesus wept 🙈are you honestly saying no tradesman/hairdresser/nail technician has never done nixers on the side? It's always been thus, same as teachers doing grinds privately, He pays enough tax , as do we all

So he said cash when he quoted and thought that you understood that it meant not on the books.

Cheaper job but no receipt. Plus illegal.

Me neither, I guess it's a perk of the job tbh

20% Vat, and then his tax rate which might be 40% and then maybe CMS, wages for invoicing. I'm not justifying it by the way. He should have done it all above board in the first place.

Insist on an invoice stating company or persons name , address, VAT number of registered for VAT and price and description of job with your address on. Sounds like they might not be putting the job through their books for tax.

You don’t have to use him, and he doesn’t have to work for you if you don’t want to pay in cash. He may have had trouble with cheques and bank transfers not being paid or having to chase. It doesn’t necessarily mean someone is dodgy because they want to be sure of receiving payments.