To think cash transactions above £250 should be banned

[coconuttella]

Because let’s face it, the vast majority of cash transactions above that level are done to evade tax in one way or another... and those cash transactions that aren’t could easily be done another way.

.just pay with your damn card !!!

Thing is, if I can't pay cash I won't be spending that 2k with you.

You do know that tax evasion is also banned? Do you really think banning something else that also cannot be effectively policed will stop those that do it?

My mum is old fashioned and uses cash for everything, she goes to her bank at month end and draws all available cash and keeps it in her wardrobe. At last count she had several thousand. She is silly and I worry that she may get robbed. She aid cash for new bed furniture and carpet, almost 2K

We get customers paying for large car repair bills insisting they pay cash and don't an invoice presuming they will be avoiding VAT, they still do, we record it correctly and bank the cash and pay the relevant tax, main problem for the customer? when they sell the car and need the repair history and ask, we print our records and they realise they haven't cheated the tax system! We cover our arses it's just not worth it, generally cash is expensive to bank and a pain to bank so for that reason alone we encourage card payments.

@coconuttella I apologise. I missed / cross posted with your gracious acceptance that YWBU. Damn you! You're supposed to argue more and then flounce. Do you not know how AIBU works?

YABU. Why do you care? No-one's forcing you to buy stuff of that value in cash.

I think purchases under £5 using a card should be banned. No more reasonable than your suggestion but that's my opinion.

Totally agree Wonkydonky
Cash is more expensive to bank ie .7% as apposed to .2% for debit cards, we don't have a bank close by either so needs someone to drive there.
I hate cash, and there is no excuse for people who come to our business to pay with cash. I know other dealerships/garages no longer accept cash for good reason.

We paid 10 grand in cash for our car! Largest amount of money I've ever had on me!

I run a small business and have a small holding. I do not accept card payment at all due to the costs involved. Card transactions and the way they are charged massively favour large corporations who pay less per transaction than a small business.

I take great offence at being accused of committing the very serious crime of tax evasion which I see as stealing from schools/hospitals etc.

I pay with cash all the time because I’m sick of being traceable in every frigging way.

Agree with this, big brother government watching me all the time.

I pay with cash as much as possible, if I could survive without a bank account I would!

badlad. There is no need to be so rude. It’s not hard to disagree with people’s views without being obnoxious.

It’s not exactly a new idea that cash transactions are often done to avoid tax. Do you not think it’s an issue? I shouldn’t have said that avoiding tax was the main reason for cash transactions. I should have clarified that I only meant cash transactions for workmen etc.

IDontDoWindows
How about this for a source. HM Revenue and Customs research report on the Hidden Economy

DH is salaried, he gets posted a cheque every month. We then either post checks for the mortgage, and other bills or pay cash

BTW There was an episode of Moneybox on Wednesday called A Cashless Future. It was interesting. Apparently there are coffee shops that no longer accept cash.

It doesn't actually support the statement that cash transactions over 250 are done mainly to avoid cash though Crispy .... The 250 amount is mentioned exactly twice. And in both cases to state that 44% of hidden economy participants earned less than 250 in the past 12 months.

So, again, what is your source for stating that the vast majority of cash transactions over 250 pounds are to avoid or evade tax?

We paid 10 grand in cash for our car! Largest amount of money I've ever had on me
Why ? We would not be allowed to accept that sort of money, its against the law for money laundering reasons.

IDontDoWindows
I didn’t mention £250. 🤷🏻‍♀️

My ‘source is personal experience both with tradespeople and family members (not close family!) who have had businesses where
they have a cash side to their business. I’d say a majority of tradespeople that I have dealt with over the past few years have offered a lower price for cash and some would not accept anything other than cash. These is no cost or risk to them if I prepay by bank transfer so what other reason can there be to ask for cash other than tax avoidance. The most common thing seems to be to have larger jobs on the books and for smaller jobs to be off the books.

A
Saying that many larger cash transactions are carried out to avoid tax is not saying that they all are.

I’d be suprised if you haven’t come across this.

It seems a blunt way and I think there could be many alternatives to reducing tax avoidance and evasion. I would also start with the large scale tax avoiders, such as Facebook, Starbucks, Google etc.

Crispy, your personal experience is not exactly a source to prove this enormous generalisation.

Many, many, many trades are cash in hand and still go in the books. Just because they offer a discount for cash doesn't mean it doesn't go in the books.

And yes, there are costs to having funds transferred through banks, I'm amazed you don't know that. One of my NFP foundations has to have a business bank account and even with the discount we get for being NFP we still have to pay for transactions through the bank. This all adds up if you do a lot of transactions.

Business accounts at banks cost money. The less you have to use them, the less it costs the company.

Once upon a time cash transactions were the only way to buy anything. As we move further and further down the contactless route I strongly suspect cash payments will become obsolete. It might take thirty years or so but it will happen eventually.

Idontdowindows

It cost money to pay into the bank. 0.70p per £100. We are not allowed to keep over certain amounts of money on site because of insurance and not allowed to take high sums of cash because of money laundering rules. Cash is just as expensive and a nuisance.

It cost money to pay into the bank. 0.70p per £100.

I know. So in many trades a mostly cash economy is vibrant and very much alive. Not to avoid taxes, but to avoid costs.

But i bet they dont have adequate insurance to cover the cash, they have in their house or in their business idontdowindows

i bet they dont have adequate insurance to cover the cash

It is actually perfectly possible to run a mostly cash trade a completely legal way and be adequaly protected as well.

Oh my god do you have nothing better to do than start an argument 😩