Hairdresser asking me to pay in cash

[Sally3490]

I've been going to my hairdressers for about 10 years. It's quite pricey £160 for full highlights and a cut (London). When I was last in they asked if I would pay in cash in future. The ATM is on route so in theory I could, but it adds some level of inconvenience and I'd rather not be carrying that amount of cash with me. But also, I feel it's damn cheeky. They are charging alot of money and should be paying their taxes. AIBU?

Not necessarily, that relies on someone there and then being able to check a bank transfer goes through before you leave. Sometimes there are delays in them going through etc.

Or just keep paying by card? They aren't refusing to take cards for all customers. I was specifically taken aside as I left the salon to ask if in future I could pay in cash. To be fair they weren't saying that was the only option. I can only assume I was targeted as I'm a long standing customer.

My hairdresser asks for bank transfer into her personal account, presumably that’s no different to cash?
Im surprised they want cash on the premises TBH.

Card machine fees are probably the reason. My hairdresser used to do bank transfer but some people never paid, so now it's cash or card. But she runs a small business so I always pay her cash. But my cut and colour is fifty quid 😂

There’s absolutely nothing illegal or tax dodging about a business preferring to take cash payments over card payments. Card transaction fees are crippling for small
businesses, on top of rentals for the machines themselves! A lot of businesses, mine included, use the cash we take to pay suppliers, it negates fees on both sides that way! Using cards always has a cost for someone, using cash doesn’t, it should be championed!

I knew people at two different companies (lorry driver and model agent) who were PAYE but who got extra hours paid in M&S vouchers. When I see people with trolleys of food in M&S I always imagine they get paid like that. It’s really frustrating. The lorry driver’s company also did cash jobs and split the money by way of £1000 M&S vouchers at Christmas.

If you want to keep going and want to keep paying by card pay by debit card as these usually have a flat transaction fee unlikely credit cards that take a percentage. Amex takes the highest percentage and that is how they fund all the things they offer you.

My hair salon has been doing this since the start of the year, when the bank increased cheque processing charges for small business accounts. No alternatives. Prior to that, I'd paid him by cheque for 20 years because card processing fees were too high.

Your salon is probably trying to reduce their bank charges. They are not necessarily avoiding tax.

I always pay cash where I go, the majority of customers do. They’ll accept card if you want to.

If they aren’t up front with their tax, that’s a them problem, not for me to even be concerned about.

This. Cash deposit fees are similar to card transaction fees. Refusing card payments Its often a way to either:

• avoid hitting the VAT registration threshold
• declare lower profits for tax, child maintenance or benefit purposes
• pay undocumented workers "off thd books" cash in hand.

Support local businesses by paying in cash.

I know someone who works for a financial firm - believe me, they make billions just from taking a tiny cut of all the card transactions.

I vote with my feet as I hugely prefer to pay by card to manage my spending like a PP. also there’s barely any cash machines where I live and I have a 50% rate of the ATM eating my bank card and I would just rather not have the hassle.

So is this hairdresser doing a good job? Although the price seems high what would it be at other places in the area?

As is processing cash if done legally. Your theory has been disproved time and time again, why do people keep trotting this out? If everything is been done properly, officially and legally, there is no cost difference between cash and card to the retailer.

We can't assume that they're fiddling tax but there is no other reason to specifically ask for cash, particularly when transactions are at the £100+ level.

I wouldn't touch them with a bargepole and I would happily explain why. For the reasons already mentioned - security, inconvenience and likelihood of being involved in tax avoidance.

9 grand for an extension, can he do mine??!!

Of course they make money from it, do you expect service providers to do it for free? By that logic, the hairdresser in question should also cut hair for free because, 'trust me' they're making money from you too. What a weird argument!

You walk by a cash machine but it’s an inconveniences? Either withdraw cash or find a new hairdresser.
Many many businesses are encouraging cash payments to reduce bank fees, it’s not always a tax dodge.

If I can help it, I avoid 'cash is king' businesses. I pay my taxes, I won't inconvenience myself so other people can avoid paying theirs.

I don't know what your area is like OP, but I wouldn't walk through the street with that much money in my pocket. Especially if thieves catch on to people using that particular machine to withdraw cut and colour sums of money

It costs them for you to pay with a card. Do a small business a favour and pay in cash.

Do you use the NHS? Do you have kids in state school? Do you walk in parks? Are your bins collected? Do you want your house fire to be put out? Do you want criminals to be put in prison? Do you want roads to drive on? Do you want a state pension? Do you want social care services to protect the vulnerable?

If the answer to any of those questions is 'yes' then it absolutely is your concern. You're a fool if you think supporting fraud is nobody else's concern. They are not only greedy, they are literally stealing money from public services.

Some business banking accounts charge for lots of their services and smaller businesses often prefer cash because of it. Also it depends on how the staff are paid/employed in my hairdresser he’s quite happy to take card because the staff are employed and on a salary. But some hairdressers the are self employed and renting the space, it means a lot of work if people made paying by card to determine who’s money that is

This! Using a card is expensive for a business and ultimately the customer as their prices have to cover this. Cash does not mean no taxes .

I love the idea that we'd need to know someone who works for a "financial firm" to know that banks make a profit.

Ask your special insider contact about cash handling fees. They also charge for them 😮

My hairdresser ( North west) only takes cash and did bank transfer until people forgot to pay. So that stopped. My hair cut is £30 so i don’t mind.

It also costs to process cash (if it's done properly and legally). There is no cost differential in cash and card. Please listen read the various posts in this thread that say the same thing. You may be doing 'them a favour' but you are also likely to be supporting fraud and taking away money from the public services you use. You're doing them a favour but where is their favour to you? They are literally stealing money from you.