Paying people cash in hand

[stretchmarkqueenie]

I've been told by the lady I use to do my ironing that she would now like cash payment rather than the usual bank transfer. It's making me feel uneasy, and personal preference I know, I don't like carrying cash on me. Just wondered others views on paying people cash in hand?

I very rarely comment but this is one area I feel really strongly about. These people who help us out be it cleaners, ironing, car valets and the like free up our time so we aren’t spending time catching up with these jobs and we can spend our time with family, friends or just relaxing. If we are earning enough to pay people to help us my rule of thumb is pay them what I’m paid hourly minus tax and ni. My choice.
Woman’s hour had a fantastic programme about how the lowest paid women in society helped the highest paid function, I increased my cleaners wage after hearing it.
No way should they be expected to pay tax and ni on a bit of extra money when the government turns a blind eye to all the tax dodger multis.

People would not use there cards if they were hit with the 1%-8% of every transaction (small business rates big companies like tesco get much much lower rates). Whats worse some companies have a flat rate charge too depending on the store. It would be brillent if bank chargers hit everyone every time they did a transaction just like it does small companies and i am sure less people would be against cash payment.

So you being difficult i bet you would not like to cover the difference in charges.

My friend owns a small company that uses card machines the best rate she can get is £1.20 flat rate +6% of total value of the transaction. imagine every pay slip you get / salary going into your account was hit with this level of charge (pre tax obviously).

This is such a trivial issue OMG. Tax evasion? Really

Say you do a job worth £100 - pre tax, lets be generous and say tax man takes 23%, then costs of the company (NI, insurence, supplies etc) is 40% of then after all this the cost of bank transactions / card machine can take up to another 8% of the pie. Its such a scam.

Seems a reasonable request to me. I pay cash for my ironing.

I doubt its tax evasion. I always used cash more than a card and with all the issues cards can bring I like to use cash. No biggy just pay her cash

Why would you payments to your ironing service be audited redsummershoes?

I know we’re not going to, but I really want to know what professional body requires this level of detail about personal spending! And how they manage to enforce it. I think it would be enough to make me to my own ironing (it wouldn’t).

Anyway OP if it’s not convenient to pay in cash then find someone who will accept bank transfers. You’re the customer. It’s not a cash in hand issue though and HMRC won’t be after you.

If it's too inconvenient just tell her that, one of other if you will have to concede. No reason to feel uneasy though, there are many reasons she might prefer cash

Some people are not that computer savvy. So checking that a bank transfer has actually happened takes them more time than it should.
I know a friend who is a plumber actually prefers cheques or cash because of this, and he declares everything and is very judgemental of anyone who cheats in any way on anything financial. He can just about manage emails, but always takes ages checking bank transfers because he is so crap at using a computer. But he does give a numbered invoice and receipt.
Some people who are now used to not using cash, don't realise that for some people cash or cheques are way easier and it has nothing to do with tax avoidance.

This is a mountain out of a molehill if there ever was one.
Just take the cash out next time you're near a cashpoint. Have it ready in advance.
Its not anyones business why she wants cash in hand now. Shes still providing the same ironing service at the same price, no?

For all you know the ironing lady could have an abusive husband who takes money from her bank account and this is the only way that she can keep cash to herself.

It could be that she has debt issues and the CAB (or similar) have advised her to stop using her current bank as every penny that gets put in their is just going on her overdraft.

Forgot to add - If I was your ironing lady, I would tell you to do your own ironing if you chose to be awkward about payment.

If you value the service of the person you 'use' just pay cash and get over yourself. You are not the line manager for the world of outsourcing ironing.

Pay her the cash and be glad you’re not the person ironing others clothes for a living but paying someone else to do it.

This and...

as a freelance worker she dictates her terms. You can either accept them or find someone else.

I pay my staff in cash as they prefer it. I pay them, they sign their wage slip as received and I photocopy it for my records. Everything is registered with HMRC. Job done.

Oh and I dont "use" my staff, I employ them or (in the case of my cleaning team) I am their client.

Do your own ironing - problem solved.

Or, stop being an arse and pay her cash. Problem solved.

You are not the line manager for the world of outsourcing ironing

Say cash is too much hassle and you would prefer to continue with the current method of payment.

I spent a good deal of my holiday last week texting 'reminders' to people to do bank transfers for services received.
It's actually mortifying, but the money was hundreds of pounds. If they'd paid cash at the point of contact, it would have been fine.

You're just one person, a small business owner may have many forgetful clients.
If you're worried about traceability, ask her for invoices?

As someone else says - it's a legitimate payment method, she's under no obligation to offer electronic payment.

In the longer run it's more work for me to be paid in cash,records, tax, audits etc, but short term it's quite convenient to have cash instantly available for child related payments.

“Why would you payments to your ironing service be audited redsummershoes?

I know we’re not going to, but I really want to know what professional body requires this level of detail about personal spending! And how they manage to enforce it. I think it would be enough to make me to my own ironing (it wouldn’t).”

I don’t believe any do tbh namechangeforthiscancershit

Also Nike I do think your point about tax evasion/ avoidance is valid BUT it’s simplistic. Large companies/ audit firms are ahead of HMRC, not compliant with them. Generally the way it woks is you do what you responsibly think you can get away with until they tell you otherwise. It’s not the compliant atmosphere you paint, and most companies are employing people who are smarter and have more resources behind them that HMRC could ever hope for. They’re not the power house directing the corporates into compliance you’ve painted at all.

I have a cleaner only takes cash and I can’t count the number of times I’ve had to go out to a cash point at midnight the night before because I’ve forgotten to get the exact odd amount of cash to leave out. It’s a massive pita.
Usually the whole reason you have a cleaner or ironing service because you’ve got no time between kids up and to childcare and you to work and pick kids up and home again, then can’t pop out if there’s not another adult home.

Don't complain when someone legally minimises their tax bill - you'd do the same

No. Really, every must complain actually. The tax system is not fair. The super rich manage to squeeze out of paying the right amount of tax whilst the poorer people and small buisness get hammerd

My cm only takes cash. It's not a problem. I know for a fact she declares it all and it's not exactly difficult to remember to withdraw the same amount to be paid to the same person on the same day every week (and even if it was hard to remember I am sure I could set a reminder).

The super rich manage to squeeze out of paying the right amount of tax
FFS no they don't! They pay LEGALLY the right amount. They take advantage of loopholes LEGALLY available to everyone (only they won't be applicable to most people). You may WANT them to pay a greater share, but as the LAW stands currently they don't have to. If you have a problem with this then lobby to do something about getting the rules changed. But don't go spouting bollocks about them evading tax because you are factually wrong.

So getting cash is another thing to add to your busy to do list but it's fine to put it on the cleaners equally busy to do list? Just give the poor woman what she wants, ffs.