Cash in hand?

[scotscorner]

We have recently got a new cleaner and she has been very clear about cash in hand only (first time we’ve met her). The old ones were very professional; had invoices and clearly trying to run it as a proper business - though same price!

It got me thinking about how I feel about cash in hand. Obviously it doesn’t absolutely mean that someone is failing to declare income but it’s an indicator. Interested in views - does ‘cash in hand’ put you off hiring a tradesperson / self-employed person or do you think it’s none of your business?

YANBU - it would put me off
YABU - it’s none of your business

Not necessarily. Some people find it easier to budget when they have actual cash in front of them. It also means it can't be swallowed up in little random purchases as it makes you more conscious of what you're spending.

I'm a dog walker and take cash or bank transfer - the cash is all declared but sometimes I'll use it to buy things instead of depositing in then taking it back out again a few days later.

🤷🏼‍♀️

I have no issues with this. Our old cleaning lady switched to cash only because she wasn't getting paid. People would 'forget' to bank transfer to her and she spent a lot of time chasing payments. It was easier for her to just say pay cash on the job so then she could draw a line under each job in her schedule on the day.

How do you know that anyone is declaring it though? “Cash in hand” generally means “off the books”.

Yep. I regularly find myself chasing bank transfers as people "forget" or say they'll do it later and then never do!

You don't know if they're declaring your bank transfers either.

An agency can afford to pay an accountant .
A cleaning lady takes cash in hand.
😉😁😁

What a depressing view to hold. On that basis all criminality is excusable because someone else already does it.

No I didn't say the government does anything criminal did I?

But the odd cleaner doing cash in hand work is absolutely irrelevant. Like I said that money will most probably be spent very quickly and straight back into the economy.

All the legal ways to dodge tax are far more worrying...

True, but if they have benefits claims then DWP will be able to ask for copies of bank statements etc. with cash there is far less likelihood of any record of it.

Some fraud is OK is certainly a bold stance to take.

Is some violence also OK? What about low level sexual assault? Do you also support that?

Bank transfers are only instant if the payer actually makes the payment, realistically most people don't set up a standing order for a service like this. Small business owners, like cleaners, hairdressers, window cleaners etc don't need to be spending time chasing customers who still haven't paid for a previous service and yet so many have to if they accept bank transfers. Cash ensures they get paid the same day.

That top level messed up thinking.

YABU as long as the person is trustworthy and does the job cash is king!

I lean more this way. Overall, people on lower incomes are just trying to get by in an unfair system.

I'm always happy to pay cash for any small cleaning or DIY or maintenance type jobs that don't require a proper tradesperson.

What’s unfair?

It's unfair that rich people can pay accountants to find ways to legally avoid paying tax.

Same. I'm on a low wage and don't have a choice about paying tax but I don't care if someone else or a similar wage does or doesn't. I hope a good proportion of any saved money will go back into local businesses.

You're right, but I still think it's unfair assumption that cash in hand = tax dodging. There are numerous reasons why someone may want to be paid in cash - from an abusive relationship to something as simple as they find it easier to budget that way.

Haha er.. where do I start 😅

Cash is guaranteed payment.
Some clients seem to think payment is optional or they'll make the transaction when it's convenient for them.
Cash pre or post-clean sorts the wheat from the chaff.

I earn a large salary but all via PAYE. Do you think it would be OK for me to get my employer to pay my bonus in cash and avoid tax?

All of my income is PAYE. Apart from pensions and an ISA I have no opportunity to avoid any tax.

So if you're PAYE on a large salary, I presume you pay top rate tax...40 or 45%?

Isn't it funny how, according to the newspapers, rishi sunak paid 23% tax on his £2million+ income. I mean all legally obviously. But still. If he paid 45% tax rate, I highly doubt he'd see a big deterioration in his living standards.

I suggest you get more angry about that than a cleaner pocketing a few quid.