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?

It’s probably for tax avoidance or she would have said bank transfer and credit card fees are apart of running a business. Cash is untraceable. I’d just say you can’t as it goes on a credit card or just say you aren’t comfortable with it, she can’t say much

I’m perturbed at the assumption you think that going to a hair dresser in a salon wouldn’t be putting the cash payment through the books when the appointment is there in the diary

I only take card payments for my business simply because it’s easier to do my books, however I pay a fee for every single one and they add up so I get why more businesses prefer cash

This!!!!! People assume it’s for tax avoidance! 🙈😂 us hairdressers don’t earn enough to avoid tax! Card machines are a huge factor as we get charged on every payment!

So the most loyal get the most inconvenience? Nice way to look after customers.... not.

There is no way I'd be walking around with cash on me, apart from worrying I'd get mugged I'd probably lose it on the way.

Wtaf. Go somewhere else where they pay taxes.

Well when your taxes pay for things you don’t agree with then I don’t blame them to try and avoid paying tax if you can. Unfortunately I am PAYE so I’m housing and feeding certain people I don’t want to.

Taking cash is a complete nuisance for me.

I'm charged (a lot) each time I bank it and the reconciliations take up my precious time. Even more time is taken driving to the city centre to actually get to the bank. I could use a post office but they all close at 12 here...

None of my suppliers accept cash either so I need the money in my account to pay them.

Then again I'm not trying to dodge my tax obligations...

I immediately assumed it would be about the VAT threshold and that they are trying to avoid registering. Also potentially impacting corporation tax (both amount payable and rate). They may feel that it would mean increasing prices to a level that feels uncompetetive or having to swallow the hit. The number of people who are avoidant of tax and find justification for it, but then also rely on public services, astounds me.

It isn't bank charges. If it were bank charges they could stick a fiver on to the price and people would pay it without a grumble.

Last week a removal company offered me a discount for paying £3000 in cash. I offered bank transfer, they said no. I asked why, they said to reduce paperwork. I hired someone else.

That price sounds a bargain for London! That aside I’d not want to pay cash. Even if they prefer cash you can say no. Maybe ask if they now have a different non cash price

But it's money! You can process it using your phone directly into a bank account.

My hairdresser dont accept card anymore but do accept bank transfer so I pay by that. What I came here to say was I dont think £160 is expensive for London, I pay £130 for the same in a small mining village up north, Id have thought it would be way more in the big smoke!

My hairdresser also doesn't accept card or bank transfer and openly told me it's for tax reasons! She said she looked into card payments and the fee was tiny, but she couldn't claim people just had a £40 cut instead of £140 highlights then. I don't mind, costs me the same and it's no skin off my nose but I can see why people object

It’s no skin off your nose until your parent has a heart attack and no ambulance turns up.

My previous hairdresser always, always took cash only because of the card payment charges. I know it wasn't for tax avoidance because we were chatting once about the COVID times and how they managed. He said that they were fine because of the money self-employed people could claim and how it was based on the sums of income you had previously declared. As they had always put all of their earnings through the books and paid tax on them they were able to claim an amount that accurately reflected their normal income.

Incidentally those hairdressers are now retired and the new one I have tried is also cash only so I don't think this is unusual for hairdressers. Then again I am not having things done that cost £160. More like a quarter of that!

It’s not only taxes though it’s card transaction fees. Lots of small businesses lose 3.3% to card fees. That’s like a fiver lost because you’re paying by card.

If they’re losing that much then they really need to shop around. They should be paying nowhere near that much.

Aware this will make me generally hated 😂 but I have previously been in the role of investigating small/medium businesses for tax evasion, people would really be surprised at how common it is and brazenness of so many of them. Only taking payments in cash is 100% one of the main indicators that a business is avoiding tax - whether VAT/IT/CT.
and once it’s flagged up it’s usually easy to identify where it’s the case as lifestyles don’t match up to only having an income of £12,000 a year.

I’ve had people openly tell me that their accountant told them to declare 12,750 and not bother with the rest (and no, not directors who then declare the rest as dividends). These same people constantly complain that they can’t get a drs appointment, hospital services are crap etc. but somehow believe that they are entitled to not pay tax 🤷🏼‍♀️

This is a £160’transaction, not £1.60, of course it’s a tax dodge.

Completely agree

I agree with you OP. She’s probably asked you because she’s known you longer. I was roasted on here because I refused to pay a cleaner £100 in cash. The ‘card transaction fee’ brigade had a field day, even though the alternative in that case was bank transfer. Glad to see that the tide is turning and most people agree with you.

Do you also keep a bucked handy in case your house is on fire or do you expect the fire brigade to turn up?

Brilliant 😂

Exactly. I used to pay my window cleaner cash as it was only a small sum and I thought he’d prefer to get the money straight away. He asked me to transfer it instead as it’s easier for him to trace it and do his accounts. I can’t see any real benefit to cash unless it’s for fiddling tax.

Ordinarily I would say it could be for any reason but here I think you’re right. Mostly because after ten years you’ve been asked to use cash which to me suggests they think they can trust you. If it’s all declared and cash is just to avoid fees why the sudden change? I would guess that a proportion of customers pay cash and they aren’t put through the books to reduce tax liability.

The fees she will be paying for a card transaction on her bank account is less than she will be paying as a fee to pay in cash, as it costs banks a lot of money to process cash so they pass that charge onto customers. So in my mind, her wanting cash has nothing to do with card fees and everything to do with avoiding tax.

I would personally vote with my feet and go elsewhere. Not only is it an inconvenience but I don’t agree with people purposely avoiding tax when the rest of us who get paid through payroll have to pay considerable sums every year.