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?

No is suggested that it is always for the purpose of tax evasion. But it mostly is.

I run a business but never ask for cash payments. Some customers choose to pay cash and that’s fine, but I’d never insist.

People keep going on about card payment charges when the OP was talking about cash versus bank transfer. Taking bank transfer payments costs nothing.

I'm self employed and find it irritating when people pay in cash as then I have to queue up at the post office and pay it in. On the rare ocassion people can't or won't do a bank transfer I'd rather have a cheque which I can pay straight into my account using my banking app.

I would agree with OP, I'd assume a tradesman requesting cash was probably not declaring all their income.

There is an H M Revenue & Customs line to report such people…

Putting money in an ISA, for example, is tax avoidance. It's not 'using the tax system in ways... it wasn't designed for' though.

I’ve always found it dodgy too but noticed it’s pretty common with tradespeople. The hairdressers I take DS to for his £5 a month haircut is cash only too. It’s an old guy who runs it so I don’t know if that plays a part.

I almost never have cash so if somewhere is cash only and I didn’t know about it they can forget my business.

I have a small business one employee (me) Ltd company so accounts and taxes paid as they should be, i've been trading for 18 yrs.

I have always sent invoices and used to get cheques, transfers and sometimes cash payments, I also have a card reader which cost 2% for each transaction it rarely used but I have it in my bag in case I don't trust that the client will pay by transfer.

Some people ask how much if I pay by cash? same amount as I don't discount rates. some clients pay by cash and to be honest its a ball ache to go to the bank to pay it in so I prefer no cash.

Most predominantly cash businesses, such taxis now, all take cards although a couple recently have said they want cash due to the rate on the card machine another ball ache as they then have to take me to the atm so I can get cash.

I think there are more issues with money laundering with Vape shops, Turkish barbers and such than the gardener/ window cleaner getting paid in cash.

You're actually inconveniencing her. She has to bank that cash. Its considerably easier for businesses to trade cash-free, (which is why we are increasingly seeing businesses refusing cash). It's a myth that it's more expensive for businesses to take cards.

I think there are more issues with money laundering with Vape shops, Turkish barbers and such than the gardener/ window cleaner getting paid in cash.

i think these are all issues that need to be addressed by HMRC if we are to tackle evasion in a meaningful way.

I want to be that person who has a chimney sweep and a mole catcher.

Yes, 'how much can I pay if I pay cash' really annoys me too.

I had a decorator I used for a massive job, always insisted on cash and then on Facebook he's the first posting about the boats and migrants ruining our country etc but fine for him to tax Dodge and the rest of us pay for his healthcare and kids education etc. Sick of the same constant narrative. I'm happy to pay my taxes but my kids barely get science experiments and school trips, the NHS is a disaster zone and our country is turning to rat shit, why am I paying and making up for the thousands that don't pay, including the multi million pound turnover tax dodgers. I'm with you OP they are stealing from the rest of us, you can't know that's the reason but ask for an invoice or receipt I guess if you are using someone who wants cash. Greece changed their culture on this and it's totally changed their economy

Agree. Unless someone actively says they want cash, they will find this irritating, especially if you also imply you think they'll keep more money that way.

For me it depends on the trade and amounts involved, and the person (if I've already been using their services for a while). Best to do what you feel comfortable with.

It's always tax evasion. There is literally no other reason for it. It's not up to the customer to make them pay their tax so I don't see a problem paying tradespeople in cash if you want to.

The idea that cash in hand jobs are a little "fuck you to the government" is funny though. It makes a mockery of the people who do pay their tax and takes money from schools, hospitals etc. Its a fuck you to the rest of us, not the government.

Well ,we have a regular customer who - if they didn't pay cash on the day of the work I would spend days chasing them for payment via the bank! Stop being so suspicious. Not everyone is a tax dodging benefit cheat 🤣

I would never pay someone in cash. It is not fair for people to not pay their fair share, especially when it comes to child support so the state has to pay again.

When people ask to be paid cash in hand, I say I will if they provide with a valid invoice / receipt.

I'm a tax advisor and do not want to be seen as being complicit in any form of tax evasion.

No well run trade (plumber, builder, joiner etc.) will offer a discount for cash. It's not about bank charges - bank transfers are free. It's about not putting a transaction through the books, potentially not issuing an invoice, avoiding tax. Which means the rest of us pick up the tax tab.
It's a personal choice, I guess, and I choose not to give my money to those businesses.

Yes they will be avoiding tax or getting undeserved benefits.

Do you put the cash payments through your accounts?

But a hell of a lot of them are dodgy tax evaders! I wouldn’t touch a tradie asking for a large amount of cash with a barge pole. If they aren’t prepared to pay their tax how do you know their qualifications are legitimate either?

i always do an immediate bank transfer after receiving an invoice.

And car bootsales lol

Strange for example a local takeaway to me much prefer cash. It's all added up and put through the books . The reason cash is preferred it due to excessive card machine charges. Why should the card companies gain more when they actually aren't doing the physical work of cooking, packing etc?

The cash exchanged will only be subject to income tax if the person selling the goods is looking to turn a profit / run it as a business. If I do a car boot to declutter that’s fine. If I do a car boot to sell stuff that I have bought for resale or produced for sale myself that’s taxable.