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

@RJnomore1 On behalf of my 3 children, our empty fridge, our gas bill and the NHS I have a massive moral issue with tax evasion. It is my personal problem. Would you believe it’s the children’s own grandma, grandad and father who do the books/banking/kiddy fiddling

No issue until you complain about NHS or your childrens school. Or compare UK living standards right now to other countries.

We had a VAT inspection 3 years ago, but the difference is our business has a VAT refund every month and they weren’t happy about it.

I'd pay cash if asked in advance. Must say I'd resent being threatened this way though, it's poor practice.

what would you expect HMRC to do

Only one way to find out what HMRC would do. They need evidence and as the cash paying customer, you could send things such as … photo of work completed (maybe before and after shots) van parked outside property, any gas safety certificates, job sheets or such that were issued, text messages agreeing the job etc. It would give them an idea of exactly how much CASH these traders are ACTUALLY hiding. I believe they have been known to follow these busy traders on an average week or so. My ex husband (and his family) always stash hundreds or thousands (not the sprinkly kind) in their bedrooms

are they charging you VAT?
If your concerned its a tax scam (they are charging you VAT but not paying the VAT to HMRC), the threshold for registration is £82k, they have to provide a VAT registration number (on a valid tax invoice)
you can check the number is valid www.gov.uk/check-uk-vat-number

If there's no VAT, but you think they are dodging tax, you can report to HMRC here www.gov.uk/report-tax-fraud

I've not used this link, but this lets you check VAT registration by company name www.vatsearch.co.uk/

You don't actually need to provide physical evidence. All you need to do is report as other pp's say via the correct channel.

I reported a business once, I rang them up (years ago) and all the person on the phone asked was why I was reporting it. I told them I was a freelance book-keeper and had come across the firm in the course of my work with another client. I thought there was something fishy going on, and felt professionally bound to say something. I think they were just trying to make sure I wasn't making some sort of malicious report to 'get' at someone I disliked, if you get my drift.

Totally agree.

It's pretty standard to pay workmen in cash, don't think I've ever done otherwise. As a business, they do have the right to only accept cash. It's more common with small businesses than large ones but perfectly legal.

Whether they're trying to avoid paying tax or not is largely irrelevant to the dispute, the business is responsible for making sure it pays the correct amount of tax.

If they wanted cash on completion then they should have made that clear before the started work. Payment terms (and bank details) are usually included on the invoice which should also have included details of penalties for failure to adhere to the payment terms. If they have no documentary evidence that they made their payment terms clear to you before they started work then they don't have a leg to stand on.

I would send one final email telling them they did not inform you of these payment terms, it is now inconvenient/ not possible for you to pay in cash but you will make an instant payment if they can supply you with bank details. If they do not supply the details then you will wait to here from their solicitor but you will be claiming any costs from them if they take you to the small claims court.

I do not think this company sounds reputable.

They only have "the right" to only accept cash if that's part of their T&Cs and presented to the customer before the work is contracted for. They can't just turn around after completion and start imposing new terms that hadn't previously been agreed to!

Why would a legitimate business be so desperate to be paid cash?

In the building trade a builder for example
will need to pay staff, subcontractors and suppliers in cash. Easier to have all the cash on hand to make it easier to do so.
It can be a tax dodge, but isn’t always.

It can be a tax dodge, but isn’t always.

No, sometimes it's just enabling someone else's tax dodge 😁

It used to be easier when it was a choice of cash or cheque. Now bank transfers are instant it doesn't make any difference.

"As others have said we dont need more people avoiding tax, we need every bit of tax due to fund the NHS."

It's a shame that our Tory Ministers and their spouses aren't as Moral. It doesn't matter how much tax we get in, a Tory government won't fund services. Our services aren't going to shit because we have a lack of money.

There are plenty of reasons other than tax evasion to request payment in cash, and it's not like paying via bank transfer is a cast-iron way to prevent it.

"As others have said we dont need more people avoiding tax, we need every bit of tax due to fund the NHS."

Nah, what we need is a competent and non-corrupt government.

My business is classed as construction. All of our staff, subcontractors and suppliers are paid by bank transfer. Why would cash be easier? We have never paid cash, in over thirty years of successful trading.

I can think of no legitimate reason why a bank transfer wouldn't give the same speed of payment.

Everyone needs to take responsibility - the tax dodgers and those in positions of power.

What are the 'plenty of reasons'? I can't think of one.

I dream of a world where everyone pays their fair share, and that money is spent responsibly and competently.

It's not a binary choice!

I'd tell them to piss off and they can have an instant bank transfer if they'd just send you their bank details, or can take it through the court system. I'd not be inconveniencing myself to go get out large quantities of cash (I don't even know what time my bank is open anymore, nor would I likely be able to go anyways as I'd probably be at work when it's open), when I can send them it using my phone in a matter of minutes. I had a patio done recently, about £8k, all paid at the end of the job by bank transfer.

Eh, I pay my subbies via bank transfer.
Personally, I pay my suppliers via BT online.
I don know whether this company is tax dodging or not, however, cash is legal tender.
The conversation normally goes something like this, 'How would you like paying', 'We would like you to pay in cash please'. Then the customer pays in cash, they're threatening you because in their eyes you are technically withholding payment by refusing to do as they have asked. Take this to court and you will most certainly lose on the premise of non-payment. End of.

Just to add the monies passed over are taxed AFTER ALLOWABLE EXPENSES, materials-fuel, other capital expenditures, etc, etc.

Business revenue IS NOT THE SAME AS PAYE STOP COMPARING THE 2.

Apologies for the shouting but the misinformation on display is irritating.

The conversation normally goes something like this, 'How would you like paying', 'We would like you to pay in cash please'. Then the customer pays in cash, they're threatening you because in their eyes you are technically withholding payment by refusing to do as they have asked. Take this to court and you will most certainly lose on the premise of non-payment. End of.

Do you have any evidence of a court case where someone has refused payment and then taken the customer to court and won? OP has evidence she tried to pay.