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AIBU?

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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:
Badbadbunny · 05/05/2022 20:14

No, HMRC don't care about "small fry" anymore, but they really should. It's endemic now. Nearly everyone we get quotes from say they'll knock off the VAT for cash. That's been £2k for scaffolding, £10k for re-roofing, £3k for car repairs after a crash, £400 for some fencing. It's not quite so bad if it's an odd job man wanting £50 "beer money" for a Saturday morning job, but when it's thousands for "proper" small firms who have staff, it's not really acceptable. The tax lost from the "black economy" is the biggest component of the official tax gap figures!

P00rKids · 05/05/2022 20:18

And why would the business need to draw lots and lots of cash out to pay suppliers/labourers. If the funds ARE in the bank - then pay electronically - as that is FREE. Problem solved.

Fairisleflora · 05/05/2022 20:35

HMRC are starting to automate their systems to be able to pick up on things like this though. It won’t be long. And they still do compliance checks where they go to a non-Vat registered restaurant, have a meal and check to see if the meal has been rung through their tills.

THisbackwithavengeance · 05/05/2022 20:37

I pay cash for small jobs only, anything over £100, it's bank transfer.

It's the inconvenience of paying cash now. If you go to the bank and try and withdraw thousands of pounds in cash, they will want to know why and you get 20 questions from them. My local branch was shut down and the nearest is 15 miles away. I'm working during office hours and then I have to factor in the cost of petrol to town and back plus parking to get to said bank. Then walk through town back to my car with £££ in my bag hoping my bag isn't nicked.

Why would anyone go through that to try and help some piss taker avoid tax and child maintenance?

Eightiesfan · 05/05/2022 20:41

Completely unreasonable to expect such a large sum of money to be paid in cash. If they insist on it make sure they provide a receipt on company stationery and ask for a copy to be emailed to you.

IcedOatLatte · 05/05/2022 20:45

HollowTalk · 05/05/2022 16:43

I'd be telling HMRC that they will only accept cash.

Why would you waste your and their time with that?

There's nothing wrong with only accepting cash, what would you expect HMRC to do other than shrug their shoulders and say And?

user1237 · 05/05/2022 20:45

Sorry OP, I may have missed it, but, were you given an official invoice for the works? Is there any chance the decorator is skimming off the top? Like, you're told it's £3000 (for example) but the company is actually charging you £2,200 and he's banking £800?

SlatsandFlaps · 05/05/2022 20:50

InkySquid · 05/05/2022 15:52

I'd refuse on the grounds I can only withdraw £250 a day in cash from a machine. I'm not even sure where our nearest branch is now, the ones I used to use have all been closed down.

You can withdraw & deposit cash at any post office

SlatsandFlaps · 05/05/2022 20:53

cashorbanktransfer · 05/05/2022 16:10

As others have said we dont need more people avoiding tax, we need every bit of tax due to fund the NHS. The work calculated to an extremely high hourly rate so not like a minimum wage cleaner for example who may be struggling.

They have not increased the price but we would need to go to cash point each day for 2 weeks or go into branch and arrange collection which would be very inconvenient and involve a considerable drive and parking which we were not expecting.

As above - post office. You can withdraw much more than any ATM, from any post office using your debit card

P00rKids · 05/05/2022 21:02

@SlatsandFlaps

Whats the post office got to do with this? It’s not relevant. You couldn’t get enough cash to pay many hundreds/thousands to a tax evading tradesman.

starlingdarling · 05/05/2022 21:04

Can't speak for OP but my local post office is open from 9-12pm and 2-5pm. It's even less convenient than the bank in town and both would involve taking at least half a day from work.

AdultTractorContent · 05/05/2022 21:05

I didn't think you could charge interest for the first 30 days? Or maybe I'm wrong.

Dh is tradesman he accepts cash, cheque, bank transfers and takes card payments. He has customers pay several thousand in cash (their preference) he just then pays suppliers with it directly. It's all accounted for with invoices, VAT and tax return etc
Business account changes payments in and out. Not loads, but it's not a crime to not put all cash through your bank as long as it's declared.

SlatsandFlaps · 05/05/2022 21:07

starlingdarling · 05/05/2022 21:04

Can't speak for OP but my local post office is open from 9-12pm and 2-5pm. It's even less convenient than the bank in town and both would involve taking at least half a day from work.

That's insane opening hours! The majority of the population are near to a business hours opening PO, to be fair.

@P00rKids I was informing people who were talking about having to go to the cash machine multiple times, that they can now use the PO!

gettingolderandgrumpy · 05/05/2022 21:10

InkySquid · 05/05/2022 15:52

I'd refuse on the grounds I can only withdraw £250 a day in cash from a machine. I'm not even sure where our nearest branch is now, the ones I used to use have all been closed down.

Yes this I’ve no idea where my local branch is either and I’d have to take time off work to go to the bank . I’d say fine I’ve a day off in 2 months time I’ll go to the bank then . Tbh unless he said it’s cash only when you got the quote I’d say no . If I got a quote saying cash only I’d not bother with them on the grounds it’s highly inconvenient for me to get to the bank and withdraw that sum of cash .

P00rKids · 05/05/2022 21:11

@AdultTractorContent

thats different … but makes you wonder where the customer is getting all these thousands in cash from?

RosesAndHellebores · 05/05/2022 21:14

I think it's more likely they are in debt and a bank transfer will just wipe of some of an overdraft and the money will be unavailable to them.

It's their responsibility to declare their takings and pay their tax and ni. Most tradesmen/companies we deal with want a transfer because they need evidence of income for things like mortgages.

What did their estimate say? I haven't had a tradesman give me a cash price since the 80s.

AdultTractorContent · 05/05/2022 21:16

P00rKids · 05/05/2022 21:11

@AdultTractorContent

thats different … but makes you wonder where the customer is getting all these thousands in cash from?

My gran didn't trust banks. She wasn't a tax dodger.
Some people just prefer to pay cash.

P00rKids · 05/05/2022 21:21

@SlatsandFlaps I don’t think anyone on here is particularly wanting to go to the post office/bank multiple times … that’s the point. Just the tradesmen who want them to. I’d love someone to post a copy of their business banking costs showing the breakdown of how many pennies the banks are charging these tradesmen. Anyone? (It won’t happen - because it doesn’t compute - it’s just an excuse/cover for tax evasion)

Mimijamroll · 05/05/2022 21:25

Was your gran running a business though Adult tractor?

P00rKids · 05/05/2022 21:25

@AdultTractorContent don’t tell anyone where your gran lives then!

AdultTractorContent · 05/05/2022 21:30

P00rKids · 05/05/2022 21:25

@AdultTractorContent don’t tell anyone where your gran lives then!

She's been dead for a good few years. They'd have been brave/stupid to try and take her on though Grin

P00rKids · 05/05/2022 21:33

@RosesAndHellebores If they’re taking thousands in revenue though they need to be PUTTING their cash/funds in the bank to help manage their cash flow. Or else people suspect the obvious. They need to keep a buffer in the bank to cover this.

And yes my ex is now crying about how he can’t get a mortgage for this reason. Whilst earning £1500 per week. Taxman/CMS are told it’s £200 per week. He pays our 3 children £20 each.

AdultTractorContent · 05/05/2022 21:35

Mimijamroll · 05/05/2022 21:25

Was your gran running a business though Adult tractor?

No, but I was responding to being asked why my husband's customers had thousands in cash.

LuaDipa · 05/05/2022 21:37

RJnomore1 · 05/05/2022 16:34

There’s nothing to stop people asking for or paying cash. It doesn’t mean it’s a tax dodge and quite frankly it’s not your job to police them if it is.

They may need cash to pay their own suppliers or staff; they may not be set up on a bank payroll system for example but still maintaining perfectly good records and paying their tax. Even if not it isn’t your problem.

The terms of one day or interest are however preposterous. 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?

I don’t have any moral issues with tax evasion. What they choose to do is on them not me. But that doesn’t change the fact that getting to the bank these days is an absolute pain. Plus I have never, ever dealt with a company who refused any payment other than cash. Their insistence on only accepting cash as well as their failure to bring this to my attention prior to commencing work would make me extremely suspicious about their business practices in general.

In this situation I would insist on bank transfer or credit card. Put it in writing and let them take it further if they choose not to accept. I bet they don’t because they are clearly up to no good somewhere.

Valeriekat · 05/05/2022 21:41

Tax evasion is a criminal offence as is money laundering. No reputable tradesman expects to be paid in cash.