Dog walker wants cash in hand

[funtimetoni]

Started using a new dog walker in January, as old one moved away. Today he messaged and asked if I can start paying cash. Ive been paying by bank transfer and always on time. AIBU to think no, you can be paid through the correct channels like everyone else. For the record he charges towards the higher rate for the area, so it's not like I'm getting a bargain.

A lot of faux naivety on this thread. Let's not beat about the bush - the most likely reasons for wanting cash payments are tax evasion or benefit fraud.
If the dog walker won't accept bank transfers then I'd find another one.

Its the obvious reason.
More likely to end up chasing cash payments as it involves going to withdraw cash rather than being able to log on and instantly transfer it.

Paying in cash does not necessarily mean he is avoiding paying tax, but it is not an unreasonable conclusion to come to @funtimetoni

I would be more interested in whether he has insurance for walking, and carrying your dog in his vehicle (which would mean business insurance including carrying customer goods). I would wager he doesn't.

A substantial amount of tax evasion in the UK is through cash-in-hand work. You obviously can't guarantee that this particular dog walker is evading tax, making fraudulent benefit claims or avoiding child maintenance, but there is more chance that they are doing if you pay cash. The gap between what tax should be paid and what is paid is £46bn. That's money that could be spent on the NHS, schools, filling potholes or whatever.

I'm sick of reading threads on MN where someone's ex is paying £7 a week because they've persuaded CMS that they don't earn anything, but their lifestyle doesn't match that. Posters are totally sympathetic on those threads, but then are fine with paying cash, sometimes with a discount. It's complete cognitive dissonance.

If you are earning a really low annual salary (ie. under £12,000 whatever it is per year) being paid by bank transfer is a real pita because you have to submit accounts (time consuming) only to be told you don't owe any tax.

I was recently considering taking a job for 9 hours a week on just above minimum wage. I would have wanted paying cash.

My DDs both insist on cash payments for their PT jobs (dog walking/cat sitting and cleaning) as they find people remember much better.

My cleaner also does cash. Although she is confident enough to just be very black and white that if there’s no payment there she leaves. Makes no difference to me as we use cash at the local shops (butcher and fruit shop) anyways

Do what you want, but if you're happy with the service he offers, I'd rather pay in cash than have to find another dog walker. (And I'd rather stay on the good side of the person I'm entrusting with my dog.)

I haven’t paid cash for anything in years, so I’d find the having to withdraw it a minor inconvenience. But not a big problem.

I was self-employed and often preferred to be paid by clients in cash. Sometimes I’d be chasing payments for weeks or would have to pay fees to the bank, etc. While you pay on time, perhaps others don’t and it’s easier to implement a blanket policy instead of trying to remember who pays by what method.

Yes, some people avoid taxes or child benefit by using cash but there are plenty other legal reasons. I also think it’s entirely up to the individual how he chooses to run his business.

Most of that tax gap- 71% is from big businesses not paying corporation tax, excise taxes and NICs

Cash isn’t free to bank into a business account

I pay cash for pretty much everything if I can
I’ve walked out of places that refuse cash even if I’ve ordered something

I don’t mind if I choose to pay by card
but I don’t like being told I can’t pay cash

I'm a dog walker. Nearly all my customers pay bank transfer, only two pay cash. thats their choice, I respect their choice and work with them.
If you'd rather continue paying by bank transfer then tell him that. Its up to him if thats a deal breaker but most of us quite like holding on to our clients!

Usually though the cash discount is because it’s not being declared for tax.

so yes, ask for a discount for cash. You are basically saying you expect him to not report is as earnings.

This. I have to pay a fee to deposit cash.

That's not what the government says. It says 60% from small businesses.

You're assuming he wants cash so he doesn't pay tax?

Do you have reason to suspect that?

I pay my nail lady and cleaner cash. For both it's because they find it easier to manage their books and means they don't need to get a business account, which costs them money. Both pay tax and have all the legal paperwork.

If you don't like it, find another dog walker. But don't assume he's not paying tax.

No. Pay him as you have been, you need a paper trail to protect yourself. Is he insured?

Banks charge businesses to put cash in, though.

I hardly use cash at all these days and probably couldn't be bothered faffing about at an ATM on a regular (so many have closed near me recently). So it would be a no from me, but for the hassle factor more than anything else.

As stated in opening post I always pay on time. Paying by cash would be inconvenient and I'd be much more likely to be a late payer.

Is that relevant?

You don't have to use a business account to run a small business.

I do the sort of work where people often assume I'd prefer to be paid cash (I don't, actually), and I think it would be totally reasonable to say no, it's not convenient for you. If you wanted to, you might suggest paying upfront by bank transfer? One of my clients offered to do this (so she'd pay a month's worth in advance). I don't care myself, but I appreciated the thoughtfulness. Otherwise, a bank transfer these days ought to be visible almost immediately and he could certainly send you the confirmation from his end so you'd see it straight off.

Look at table 1.1

The 60% doesn’t tell you the % of the £46bn, but the % of small business category having a tax gap.

The total tax gap in £ from small businesses:
PAYE was £0.9bn
Corp Tax was £14.7bn

Total £15.6bn

Hint: a dog walker isn’t going to have filed with companies house as a corporation,