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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

AIBU to refuse to pay cash

275 replies

cashorbanktransfer · 05/05/2022 15:41

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

OP posts:
cookiemonster2468 · 05/05/2022 18:27

SockFluffInTheBath · 05/05/2022 17:56

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.

Yep, me too.

If the reason is that his staff want paying in cash, he could just get the cash out himself to pay them - he doesn't need customers to pay in cash in order to facilitate that.

And why would other staff want paying in cash anyway?

Highly likely there's tax evasion going on somewhere.

I would drop HMRC a line. It is very unfair when public sector is on its knees as you say.

PonyPatter44 · 05/05/2022 18:27

Just to add to the "no cash" argument...

THis decorator knows youre going to the bank to get a large amount of cash. He knows your car. Its not beyond the realms of possibility that he engages a "friend" to follow you to the bank, wait until you come out with your bulging bag of £50 notes, then bash you over the head and steal the bag. You've got a head injury, you're down £10k or whatever, and you still haven't paid the decorator!

AngelinaFibres · 05/05/2022 18:27

Noisyprat · 05/05/2022 18:18

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.

Wow

Loopytiles · 05/05/2022 18:27

People saying ‘pay them’ cash: why?

AngelinaFibres · 05/05/2022 18:27

PonyPatter44 · 05/05/2022 18:27

Just to add to the "no cash" argument...

THis decorator knows youre going to the bank to get a large amount of cash. He knows your car. Its not beyond the realms of possibility that he engages a "friend" to follow you to the bank, wait until you come out with your bulging bag of £50 notes, then bash you over the head and steal the bag. You've got a head injury, you're down £10k or whatever, and you still haven't paid the decorator!

Oh my god you are ridiculous

RJnomore1 · 05/05/2022 18:30

Loopytiles · 05/05/2022 18:27

People saying ‘pay them’ cash: why?

Because she owes them the money? And cash is legal tender? And they’re perfectly entitled to ask to be paid like that? What possible legal reason can you think of for not paying in the requested manner?

MagratsDanglyCharms21 · 05/05/2022 18:30

Business banking fees often are charged based in the amount going through the account. Paying cash can keep these fees down.

gothereagain · 05/05/2022 18:30

Loopytiles · 05/05/2022 18:27

People saying ‘pay them’ cash: why?

Because when a company has done a job I've requested, to the expected standard, I pay the invoice as requested and think others should too. I also think businesses should pay all required tax and having experience of businesses that deal in cash, don't see the two as mutually exclusive.

CrabPuff · 05/05/2022 18:31

We have the paranoid (they’re following you to the bank to rob you) and the stasi (reporting them for an entirely legal request). On one thread. I’m so glad I don’t know people like these in real life. We just pay people who run their businesses how they want and get on with life.

Booboobagins · 05/05/2022 18:32

LittleOwl153 · 05/05/2022 15:46

If you have not been given terms and conditions.... then they don't exist and therefore cannot be added as part of your contract retrospectively!

They are just trying it on. I wouldn't want to pay several thousand in cash without knowing about it before hand either.

Spot on. Cash means they don't pay tax. If they haven't shared T&Cs there can be no interest tgat must be disclosed to you.

Say you've taken advice from trading standards and they asked for companies full details. That you didn't provide them, but will do if this payment silliness isn't resolved. Hopefully they'll provide bank details and you can pay them and it'll go through the books.

You'll likely find the workers are all signing on, claiming off the stare and working. This is rife in the construction industry and makes me so mad! If you're a paye employee you get no choice but to pay your fair share of taxes.

This year my Corp tax (micro business) was £40k let alone all the other taxes I've paid cos all my payments go through the book.

ajandjjmum · 05/05/2022 18:40

I am shocked at the number of people who think cash payments are acceptable, and think that all of the people who request them are meticulous in their record keeping.

I don't like cheating, whether it is BP or the local plumber or decorator.

If he gave you a solid legitimate reason for wanting cash (can't think of one), before he undertook the work, I'd think about it.

I recently got three quote for a small piece of building work - all three stipulated cash payments. Why?

grenlei · 05/05/2022 18:43

YANBU OP, and I'm surprised more people don't think so too.

This is not like a transaction in your corner shop or local takeaway, where they may well ask for cash only because there is a cost per purchase involved with using card machines, which for small businesses may be untenable. Our local Chinese for example is cash only and always has been.

But this isn't a card transaction, OP is going to pay by bank transfer which is pretty much immediate or within an hour or two. If I have work done at home I'll pay cash up to £200-250, beyond that and it's bank transfer only. I'm not carrying hundreds or even thousands of pounds around in our High Street (where someone gets mugged or pickpocketed at least once a week). Plus in our local bank if you want to withdraw more than £1k you have to give notice and they'll tell you when to come in, you can't just turn up and ask for it as they limit the cash they have in branch available to withdraw.

Ikeptgoing · 05/05/2022 18:45

Ask your bank for a cheque book and write them a cheque

As they haven't given you their bank details

I would never pay for work in cash for that large amount amount. I want a paper or electronic trail that I paid them and a copy of the invoice. They cannot add unagreed T&C later on to try to charge you extra for not paying in cash. The company won't want their dodgy practices anywhere near court

ajandjjmum · 05/05/2022 18:51

Ikeptgoing · 05/05/2022 18:45

Ask your bank for a cheque book and write them a cheque

As they haven't given you their bank details

I would never pay for work in cash for that large amount amount. I want a paper or electronic trail that I paid them and a copy of the invoice. They cannot add unagreed T&C later on to try to charge you extra for not paying in cash. The company won't want their dodgy practices anywhere near court

And send the cheque to the address on their letterheading by recorded delivery.

dianthus101 · 05/05/2022 18:51

CrabPuff · 05/05/2022 18:31

We have the paranoid (they’re following you to the bank to rob you) and the stasi (reporting them for an entirely legal request). On one thread. I’m so glad I don’t know people like these in real life. We just pay people who run their businesses how they want and get on with life.

It's not legal to not pay tax. I doubt that it's legal to increase the charge for "non-payment" when they've actually refuse to accept payment without a good reason (FYI tax avoidance isn't a good reason).

starlingdarling · 05/05/2022 18:52

I wouldn't feel comfortable paying in cash, even with a receipt. I'd want an indisputable paper trail showing how much money was paid. I'd also quite like to avoid carrying several thousand pounds of cash around.

I'm sure there are a few honest business people who deal in cash but I'm a skeptic and think they are few and far between. As far as I know bank fees can be treated as a business expense so there isn't much of a case there. Not to mention, he could walk into his own bank and take the money out if he really does need cash.

Loopytiles · 05/05/2022 18:54

There are other forms of ‘legal tender’ more convenient for the customer. The vendor didn’t make the cash request clear in advance and has behaved in a threatening way to OP.

MustardCress · 05/05/2022 19:02

I wouldn’t pay this amount in cash either. I wouldn’t want to carry it and I would want a proper receipt whatever method I paid by.

It’s ridiculous to suggest they can rely on terms that you haven’t seen or agreed to.Bloody chancers.

Original poster
cashorbanktransfer · 05/05/2022 19:03

All those saying just go to the bank - it means booking time off work, driving there, parking and losing half a day of wages as I had not planned for this. I presume I could get money out but am not even sure as I use an online bank and have never had need to go to a branch, presumably they have a link/partnership to a bank with an actual branch. Never needed to consider this as I just use cash points.

However I could get a few hundred pounds out of local cash machines each day in the evenings without impacting work and could have done this in advance if there was some reason he needed cash to pay workers if I had known. I dont think I should have to try to get to a bank now when BACS is safer and quicker when I wasnt told in advance.

OP posts:
Cakeandcardio · 05/05/2022 19:06

If you do pay in cash, get a receipt! Bacs is proof of payment.

doingitforthegirls · 05/05/2022 19:07

The company doing my driveway did this on completion of the works - I said fine but you'll have to wait 2 weeks as I'll have to draw some out daily - you either wait and have the cash or get paid via BACS. He was happy to come back in a Couple of weeks

nettie68 · 05/05/2022 19:07

If a business/tradesman quotes for a job and says it's cash only or discount for cash, it immediately makes me think they are avoiding tax. This makes me doubt how trustworthy they are and whether they will rip me off. I'd rather pay a bit more and go with a reputable company who accepts payment by BACs and will provide written quotes, invoices and receipts.

CrabPuff · 05/05/2022 19:14

It isn’t illegal to ask to be paid in cash! I ask “how would you like to be paid?”. PLENTY of businesses use cash AND pay their taxes as they should. It’s so weird to assume everyone’s on the take! I pay loads of people in cash as it’s easier to budget. I get receipts, and I don’t bore myself ringing HMRC to tell them investigate.

LakieLady · 05/05/2022 19:15

Merryoldgoat · 05/05/2022 15:46

I don’t care really. I just pay how they ask and always ask in advance what method they prefer.

I’ve had a lot of work done recently though and all have taken bank transfer - even my window cleaner has a card machine.

Same here.

My plumber never wants cash, he says it's a hassle for him to get to the bank and pay it in and he doesn't like having it hanging about. He says electronic payments make it much easier for him to do his books.

My builder BIL hates having cash for similar reasons, and he doesn't pay his subbies or labourers in cash either.

If any tradie wanted a cash payment, my first thought would be that they're tax dodging and that makes me even more determined not to hand over cash.

Mimijamroll · 05/05/2022 19:18

Several thousand pounds in cash is a Lot! I can understand the OPs reluctance