AIBU to refuse to pay cash in hand?

[Dontasksillyquestions]

This recently came up in conversation with a friend and she disagreed with me.

I generally avoid hiring anyone who asks to be paid cash in hand. I don’t see how cash is more convenient these days unless it’s to avoid tax, benefits rules, etc., and I don’t want to be involved. I also rarely carry cash and getting to a cash machine is inconvenient.

Last year I stopped using a regular gardener when he suddenly asked for cash only, despite there being no payment issues (I always transferred the money on the day he’d done the work). My friend thinks I’m being ridiculous and that it’s none of my concern how people run their business. AIBU?

If my cleaner wants her 20 quid in her pocket to make life easier I really don't see a problem it's not my business if she declares it or not. I'm far more concerned about real tax avoidance than something so petty

If your uncomfortable paying cash & they are insistent just say a little while lie like “sorry I can I work in tax fraud” watch them go silent 🤣

Maybe that's where you're going wrong
I'm having a few jobs done at the min
Some cash
Some transfers
All receipts though
If they refuse to give you a receipt that's different

Why would you automatically assume they’re fiddling, plenty of tradesmen only take cash. You get an invoice from them afterwards.
It wouldn’t bother me, if I had cash.

I run my own business. Due to the fact that it’s medical and I have to carry personally identifying information I don’t like to carry card machines, as every one I have ever tried or trialled “stores” the info from the last person when I go to the next clients home. Therefore I have names, addresses, medical info and bank details all in one go. That’s a huge risk to me.
I also can’t afford to pay for the 10-20% charge from the bank every time I am forced to use one - that’s a heck of a lot of money that I won’t see a penny of, and it adds up! £3 per customer per day (at a very low end estimate) adds up to around £20 a day! That’s almost an entire appointment!!
I do take bank transfers but a lot of my elderly patients struggle to do it with their phones, so they pay cash or I will even take a cheque!
I do absolutely put every penny through on my business because I need to show it for my mortgage - when we move I want to have a large enough income to upgrade our new build house.

I've known tradesmen in construction catch a cold with clients. Who've refused to pay at the end of a job. Some now ask the client to pay for the materials. Some ask for interim payments every Friday in cash to pay the lads.

There's a few rogues out there so I can understand insisting on cash.

I remember one woman had seven double glazed windows put in. She laughed at the invoice refusing to pay. They removed every new window.

Another one a hotel had new curtains put in the bedrooms, again refusing to pay. The seamstress brought along her very big rugby playing sons and started to remove the curtains. Much panic by the owners and a wad of cash appeared.

I believe you’re missing out the crucial word “sometimes” - “sometimes to avoid tax”. It absolutely does not mean that everyone who gets paid in cash does not declare it. It’s an acceptable and legal form of payment according to HMRC and all other sources.

This.
i pay various people cash in hand. Their tax is their issue.😊

I agree. I have lots of mates whom are tradesmen & they are very honest that they can charge what ever they like as ‘people pay it’- & they fiddle the books / accept cash ect to pay as little tax & NI as possible. All have more money than the rest of us in good jobs but paying all our full whack of tax (an extra shifts I work as a senior nurse takes me just over the threshold for 40% tax. So any extra clinical shifts I work on the ward I pay a straight 40% tax. But it’s fine for tradesmen to charge mega bucks an hour (most my tradesman mates charge £75-80 an hour minus any materials ect) to avoid any tax leaving me to foot it!

I work at a electrical wholesaler we have lots of 1 man band contractors who prefer cash they go and pay there supplier bills with the cash the bacs just works easier for them

Because all the time politicians can claim expenses for ridiculous things like breakfasts and second homes I will happily turn a blind eye to self employed people trying to keep a few extra pounds.

So what if they are avoiding tax, jesus we pay enough!! I wish I could get a few quid into my hand

Well yes but those that can are kind of taking it from the rest of us PAYE people by making tax higher for the rest of us ultimately.

Yes, and it's also a problem for other people who are self employed. If you don't pay tax you can afford to undercut everyone else (and some people do).

I completely agree with you. I am also avoiding particularly those that give a VAT inclusive price and then a non VAT price as long as we pay in cash in hand. I am being hammered with taxes and pay my fair share via PAYE so expect all to do the same.

I suspect that they haven't thought through how it affects them personally if someone is not paying their fair share of tax and NI contributions. It's not just one or two people - there's a whole black economy out there which reduces Government revenue, which means that we pay more tax.

Some 'cash in hand' workers claim benefits as well. How are we to know that they are not fiddling the system? There are also people avoiding child support payments by being paid in cash - that costs the rest of us in benefit claims too.

My gardener invoices me and I pay by bank transfer.

I think it's none of your business! Can't imagine caring enough.

Yes I get an invoice from my window cleaner and gardener

YANBU. I won't use traders who offer discounts for cash. If they're happy to break the law with tax avoidance, then no doubt they don't care about other laws either. PRobably also paying their workers in cash and not declaring/taxing their wages either, so two levels of tax/benefit/CM evasion. And, yes, if they're offering big discounts for payments in cash, they're almost certainly on the fiddle. These days, it's harder and more costly for them to bank cash whereas it's usually cheaper or free for them to take payment by bank transfer.

Tax evasion costs the country tens of billions per year. If traders paid the right taxes, everyone else wouldn't have to pay as much tax and/or we'd have more money for public services. Grossly unfair that tradesmen can "choose" to evade tax when the majority of PAYE workers have no such choice.

The black economy costs tens of billions per year. It's a HUGE problem and getting worse. It's far from "Petty"!

Same argument could be used for the small businesses that go over the VAT threshold. They now have to charge the customer 20% more than the other tradesman that are just paying tax.
That is why many want cash jobs to keep them under the threshold. Going over It puts them out of business, especially if it's only just over it. So how is that fair?
I certainly wouldn't blame a tradesman for asking for cash to keep him under the threshold.

It’s EVADING! EVADING! Avoiding is staying within the letter of the law. They are blatantly EVADING tax which is about as legal and moral as mugging people in the street!

Or there’s also the option to not take the job if it’s not financially worth it and stay under the VAT threshold.