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.

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

All this payment by cheques!? Have I been transported back in time 30 years? I genuinely thought this died out in 90s.

IDontDoWindows

And yes, there are costs to having funds transferred through banks, I'm amazed you don't know that

I know there can be costs to certain types of bank accounts and bank to bank transfers so there is is no need to be ‘amazed’. However the costs for bank to bank transfer can be free or if there is a charge it can be tiny.

As I said before I know that some cash transaction are done for legitimate reasons but many aren’t.

Sorry meant to post that under CrispyCrackers

Not cheques per se, just payment of salary by cheque, and then payment of everything else by cheque... We don’t accept cheques where I work... haven’t done for years. No one ever wants to pay with one. It’s mainly card with a bit of cash.

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

Isn’t that the point of AIBU?!

Anyway, as I posted a few hours back, I can see my proposal wouldn’t work, and accepted I was mistaken (something that’s apparently not meant to happen - I suppose it spoils the fun!)

A few years ago I had friends who had to declare bankruptcy for reasons beyond their control (serious illness etc, left them financially destitute,) if you’re bankrupt then you have to pay for everything in cash you are not allowed even a debit card only a cash card.

As for cash being a way to evade tax, meh. Maybe some trades people use cash to avoid/evade tax but that isn’t my responsibility. I could pay by card and there might be other loopholes they could exploit. Amazon and Starbucks seem to manage it perfectly ok, so I can’t bring myself to feel responsible for what an ebay seler does with my 300 quid.. I pay the money, they provide the goods/services, how they do that is up to them, I’m not their moral guardian.

So OP would like to stop cash transactions to prevent tax avoidance. Would it not have the opposite effect, you would effectively ban cash transactions from going through the books.

if you’re bankrupt then you have to pay for everything in cash you are not allowed even a debit card only a cash card.

That simply isn't true. It might have been some years ago, it isn't now.

www.moneysavingexpert.com/banking/basic-bank-accounts

For example, the Barclays Basic Bank Account, the Co-Op Cashminder and the Virgin Money Essential basic accounts (a) accept undischarged bankrupts and (b) issue a debit card. These are hardly obscure, sketchy providers.

Op is ridiculous. Debit card and credit cards can be tracked easily and not by the account holder, its not paranoia.

Ive paid £5000 for a car in cash before now and ive accepted more in cash also when selling a car. I save in cash and in the bank as who knows when the bank may not be able to give you access to your money, for a myriad of reasons.

If you like using just cards then carry on but there is nothing wrong with cash, many people use solely cash and still pay the right tax. my mum a landlady for one as she is older and she finds it easier to deal with. she uses cash, a triplicate receipt book and a notebook style ledger. and a multi folder for incomings and outgoings needed for her self assessment tax return.

Who are you to say that this is not ok?

In regard to ebay and gumtree, if you bought the item for your own use then its yours to sell in whatever way and for whatever amount you see fit without paying tax, as you have already paid tax aka as vat when you bought the item. The rules are on hmrc website. Different rules apply to business sellers.

Also just because a tradesman offers you discount for cash does not mean he is not paying the correct tax, as offering other payment methods, usually comes with an added cost so cash is cheaper.

All methods should be okay to use and this demonising of cash and cash transactions is just a ploy for greater control and insight into what people spend their money on.

It's called legal tender for a reason.

And how exactly do you think that relates to buying things for cash?

However the costs for bank to bank transfer can be free or if there is a charge it can be tiny.

The free-free period is only for startups and at most lasts 2 years. There is a per-transaction fee and a monthly fee.

If your business type is largely cash economy, then it makes sense to only use banks where absolutely necessary.

I’ve lost count of the number of times I’ve been offered a discount for cash with the person quite open that they can do that because they won’t have to pay VAT/income tax.

Look at it this way: if someone offers a discount for cash they are still buying taxed materials to do the job, using taxed petrol for transport, employing people who pay income tax, etc. So that transaction still generates some tax even if VAT is evaded. Whereas if the customer had to pay full price they might not be able to afford to have the job done at all and there would be no tax paid, VAT or otherwise. Discount for cash is what keeps the country running! There are bigger targets for addressing tax evasion imo.

Also discount for cash may be because the business is not vat registered and its easier and they are not breaking any law because they are under the earning limits, 75k the last time i looked.

But we run our own business and get paid in cash. And all the banks have closed down apart from the big city high street one (2 hour round trip for us) so we can’t get the money into the bank. So we have to pay by cash as much as we can. Doesn’t mean it doesn’t go theory check the books though. I think our accountant would notice if it didn’t, as the receipts for expenses would be higher than our gross income!

Also we never offer discount for cash payment. It’s only 20% and the customer always wants all of it, and no way would we as a business take the risk of being caught for tax evasion, when there is no gain for us. Moral implications aside.

It would be quite annoying if it was banned - I often pay about £1,000 cash for stuff I've hired for events.

Someone with money management issues is the EXACT sort of person who would spend £250+ on frivolous purchases lol! And then cash would help.

Bottle
I know Gates (ford dealership) dont take cash at all.
We dont encourage cash. The maximum by money laundering rules is €10k so less than £10k. We are not allowed to keep more than 5k in safe overnight for insurance purpose and overv3k needs 2 people to go to the bank.
Cash is a nuisance and if i had my way (as i do the cashing) up we would go the same way as Gates and ban altogether.

I bought a horse for cash - well over £250 I can tell you. YABVVU.

Oh, and the transaction went through both the vendor's and purchaser's books.

I have paid two to three times that regularly in shops etc and been charged Vat. How about you mind your own business?

"items costing well over £1k are not uncommon. Cash really is the only option here."

I don't really get this. Would you really feel safe carrying around thousands in cash? Is it in a briefcase or something?
How does the seller know none of it is fake? Do they check every note?
Just seems so risky to me. Not that there aren't risks with other methods...

"my mum a landlady for one as she is older and she finds it easier to deal with. she uses cash, a triplicate receipt book and a notebook style ledger. and a multi folder for incomings and outgoings needed for her self assessment tax return. "

What about the deposit? I think it's law now that deposits have to be in a secure account? (Maybe this is only for tenants and not lodgers...)

How does the seller know none of it is fake
Thats another problem . We have to count it in front of customer and check each note with uv light bar. We ended up with to fake 50s when someone didnt check properly.