AIBU to refuse to pay cash

[cashorbanktransfer]

We have just had some decorating done. Used what appeared to be a small but reputable company. All prices/spec agreed by text.

Work is completed (fine) and now we have been asked to pay cash (several thousand pounds). We refused as the prices were not agreed for this and we have continually asked for bank details so we can pay in full.

Have now been told there is high rate interest added if work is not paid cash within one day of completion as per terms and conditions. We were obviously not told this in advance! I never asked to see terms and conditions as expected to pay in full on completion.

Can a business legally require cash without agreement in advance. Surely the only reason for cash is to avoid vat or ni or tax or something - or would there be any other reason?

Thank you

give them a pre-loaded gift card with the amount?

yabu
I never pay big invoices in cash and always insist on an invoice before paying. if they didn't mention payment method and t&c with the quote it's on them.

That builder was describing tax evasion to you.

What some traders mean by that is that if you pay them cash in hand there is no trace in their accounts of the transaction, and they don't then charge you the VAT which they would have to do if they put the transaction legitimately through their books. They are fiddling not only VAT but income tax and/or Corporation tax as well. If they are investigated then you, their customer, will be liable for the unpaid tax.

There is a rule about cash transactions though, for £10,000 and upwards which is to do with money laundering. It is to prevent drug barons and other criminals from laundering large sums of money. Anyone being paid like that has to confirm that the person paying them is who they say they are, or face the consequences if they're not.

With Barclays, there is zero limit - however, 24 hours’ notice is required for sums above £2k

@PutinIsAWarCriminal I'm having the exterior of my house painted next week and that is £2.5k before they do any internal jobs.

Is there a written guarantee provided with the work and do you have a written quote? This sounds like a tax avoidance scheme by the builder. If the quotes were provided by text only I assume that means no proper written quote on headed notepaper with their payment terms so therefore theres no enforceable clause in your contract to pay extra for not paying in cash.

I just wouldn't pay in cash anyway. Its far too dodgy. Unless you've specifically agreed that in advance of course.

Surely they have no absolute right to be paid in cash, and certainly not if they didn't inform you of this beforehand? I wouldn't do it. & I wouldn't be paying any "interest" either.

I would just pay them cash to make them go away as they don’t sound particularly reputable and if you feel that strongly tell HMRC. It’s not up to you to act as an agent for HMRC, they have paid staff for that.

As for all this hand wringing about tax dodging and funding the NHS. No I don’t condone tax evasion but the amount of tax lost through legal loopholes and allowances only accessible by the very rich is an ocean compared to this. I get much more angry about that.

But why haven’t you paid them? They’ve told you how they want paid, you have the money to do it I presume, are you not more worried about your own morals in refusing payment for work you have had done than theirs?

They've told her what they want, that doesn't confer an obligation on her to oblige.

This. If he wants thousands in cash then the jobs clearly off the books. That means there’s no record of it, there’s no insurance/warranty and the op is up shit creek if he decides to pull a fast one.
Just imagine what the comments on here would be if the op had said ‘I had expensive building work done and I paid the lot in cash, a few weeks on though it’s become clear that the entire job has been botched. However, when I contacted the contractor he denied all knowledge of it’. She’d be called all sorts on here for her stupidity

If you do pay in cash just make sure you ask for a receipt.

Surprised how many people don’t care if tradespeople commit tax fraud and think that helping them do it by accepting special cash only rates is ok. It’s money that’s missing for education, council services, police, courts, and most importantly the NHS. No wonder that services struggling if everyone is ‘up to them if they pay tax, as long as I personally benefit from the fraud then that’s ok’

The time for this business to stipulate T&Cs was up front before you agreed to the work. Yes, they may have a valid reason for wanting cash but in most cases, it's to keep the money out of their books.

I posted a thread last year about a roofing contractor who I'd never met before that gave me a quote of £25k for a cash in hand job and refused to do the job if it wasn't cash. In reality, by the time I'd added all the extras on it would have been way over £30k and he expected me to go into a city centre branch, withdraw a huge amount of money putting myself at risk and then just hand it over with no trail. He also asked me to not tell anyone about it. Needless to say, I didn't use him and whenever his name comes up (he's bizarrely really popular) I warn people.

But why haven’t you paid them? They’ve told you how they want paid, you have the money to do it I presume, are you not more worried about your own morals in refusing payment for work you have had done than theirs?

Theres no morals in relation to potential tax avoidance. Its a crime and its immoral to support that or any risk of it.

Just pay the bloody bill, you have had the work done and you are happy with it so pay. No wonder so many small businesses go under.

Yes. I had a new one yesterday and i still have 10 blank cheques in my old cheque book. I'm with Lloyds bank.

Some banks make you request a book, some are automatic. Its the same with paper statements - you have to ask, otherwise the banks assume you want to do your entire banking online. Go check your settings.

I would never pay 'several thousand pounds' in cash. Ever. I would not carry several thousand pounds from the bank to my house, not even for a short period to pay my contractor.

It sounds like tax evasion because they want to stay under the £85k threshold for VAT. Even if it wasn't, who cares, you don't have to pay cash if 1) it wasn't agreed before the work was carried out and 2) you don't feel comfortable.

I agree with this. It's not as though you aren't offering to pay them! Tell them it's a bloody cheque if not.

I could lose my professional membership if I aided someone to commit tax evasion or I suspected they were committing tax evasion.

I did once have scaffolding at my house and I’d had a quote that said nothing about payment methods or terms. It was only when arranging for them to remove it that they said it was a cash price quote and they’d have to add the VAT on if I wanted to pay by bank transfer.
I asked for a VAT invoice and paid the higher amount, I also reported them to HMRC for it.

Online banking is so easy and quick
now with faster payments that I wouldn’t pay any tradesman in cash now and I’d avoid anyone who asked.

No wonder standard living in UK is rapidly getting worse, noone wants to pay tax. People only want rights, no obligations.

Or do half half! Maybe give them 500 quid in cash as only two trips to the cash machine and transfer the rest!

My dad had a business and sometimes preferred to be paid in cash so he could pay his temporary staff. It could be to do with this, so I'd pay in cash this time. However, let the firm know that your bank needs 48 hr notice for large cash withdrawals. They can't spring a large cash payment request at short notice because banks have a withdrawal limit.

I wouldn't want to be walking around with that amount in cash. Our banks are in the centre so a way from parking, I'd be nervous. As other say cash machines aren't going to work. Have they provided you with a written VAT invoice?

I would tell him it is Bank Transfer or he takes you to court, and that you will be providing proof via the messages that you WANTED to pay him, but he said cash only,

Do they deffo mean literal physical cash or just bank transfer? Rather than card payment which they’ll get charged.

Ask to see the terms and conditions, along with your signature confirming you've read and agreed them