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

I would never pay over about £100 in cash to a trade. I want a paper trail showing I've paid for the work in case there's a problem with it.

And potentially pay bank charges? Did you see my second post? Or perhaps they need higher levels of cash to make payment than they can lift in time at an AGM. Due to unbanking it can be hard to get to a counter. However the op owes for the service she received - she’s not willing to inconvenience herself driving to the Ban k why should the guy she owes?

the reason doesn’t actually matter - was just pointing out there are very reasonable explanations due to the outrage on the thread. Which is unnecessary and unjustified.

There are a high number of people who condone and probably practice tax evasion themselves, on Mumsnet.

What are you basing that on, @TheThreadisMildlyAmusing ?

Will they receipt the work.
I paid someone 900 cash recently and they refused to give me a receipt!

We had this last year, it was a massive pain. Builder wanted 3k in cash, only told us at the end of the job. There isn't an ATM within a 15min drive of us, let alone a bank! When I pointed out that it was either accept a cheque or a bank transfer, or wait 6 weeks for me to have an annual leave day approved (minimum amount of time I can book ahead), so I could drive the 45 mins to the nearest branch and take out the money during their minimal opening hours, he hemmed and hawed and in the end asked for a cheque! First cheque I've written since 2005. And then he didn't actually deposit it for two months. Totally bizarre.

I can’t think of a reason for wanting cash other than not putting it through the books. At at time when the NHS is very publicly on its knees we all need to play fair bit feather our own nests. I would be inclined HMRC a line if you do have to pay cash.

Just pay them what you owe them. Don't mess them about.

In that case I’m envious as you clearly have more money than sense

Would you have the same attitude to someone working cash in hand and not declaring it to the DWP?

The decorator’s attempt to impose retroactive T&Cs is ridiculous. If you were not informed of them earlier they carry no legal weight. I doubt he will be taking you to court.

I literally could not comply with his demand. The nearest remaining branch of my bank is a few villages away and I would need to book an appointment to take out this much cash.

As long as cash remains legal tender I don’t think it is right to question someone’s preference for it. This doesn’t mean you must comply under the current circs. But by all means pull him up on his nasty baseless threats

To all of you saying that because the business wants cash because they are evading tax, you are most likely wrong. My Husband ran his own business for decades and only ever worked in cash and every single penny went through the books. The decorator probably wants the cash to pay his staff, not everyone gets paid by bank. The decorator will issue a receipt, that will prove he done the work.
I think you need to get the facts before accusing someone of tax avoidance.

@LowlandLucky I have known builders like your DH so I also dislike the assumption that cash payments always signal dishonesty. But this particular guy sounds pretty nasty, which in my mind does make more likely he is up to no good. I agree we should stick to the facts, however

Let's preserve our right to pay in cash while we can.. One day we won't be able to.

If he needs cash so badly he can just go to the cash machine and get some himself! Not make OP run around getting it for him. There's no excuse in this day and age. I would just stop engaging until you are given an account number and sort code so you can make payment.

My cousin's ex-H was a self employed kitchen fitter. He always wanted to be paid in cash so that his 'official' income was low and he only had to pay a ridiculously tiny amount for CM. Rotten bastard.

God bless you. So your husband is employing people cash in hand, is he?

Do they get payslips, to ‘prove they done the work’?

For several thousand pounds no way would I pay in cash I'd want a record of the transfer and it should be fine for them... unless they are dodgy. As a PP have said they may have to had to pay for something in case (although unlikely these days) but then you can transfer the money and go to the cash dispenser rather than you going every day. I'd reply "Sorry no way we keep that sort of amount around. If you give me your bank details I'll transfer now though".

Go to the bank with ID, get the money out and give it to them. And get a receipt. You don’t need to go to a cash point every day for weeks. Banks will give you your money. Just let small business operate now they want to operate and get on with it. Cash isn’t illegal. It’s very much legal.

Check the T&Cs if it says cash or alternatively a higher rate then you have to decide.

I would be asking for a proper invoice, getting them cash and asking for a receipt and then calling HMRC or sending the company details to them. It's not a problem if they are legit is it however anyone insisting on cash sets alarm bells ringing for me.

it’s important to keep cash in our society. It is one of the only ways women who are financially abused can manage to save enough to get away. We need it.

I pay however they ask me to, but I do agree it in advance so I can prep. I don't care about paying in cash, there's nothing inherently dodgy about it and it doesn't mean they are necessarily dodging tax. My parents own a restaurant and tend to pay the younger waiting staff in cash as they prefer it (the staff that is), but the envelopes have proper payslips in with tax, NI etc deducted.

This.

In 2022 there's really no reason why a reputable business shouldn't accept a bank transfer. I wouldn't be happy either, especially if they didn't say it in advance.

I don’t see the correlation

Most business accounts charge you for paying cash in and not electronically payments usually, another way of banks to lower footfall and then close your local branches.
Most legitimate business are using online banking surely

This. The job has been completed. Pay them