Discount for cash - what do people do?

[chillipickle]

We are getting quotes in for some decorating work to our new house - been renting since the beginning of time, so very new to all this.

The decorator we would like to use has quoted us a price subject to VAT, and the friends who recommended him to us said they negotiated a considerably better deal by offering him cash, and basically paid the price before VAT.

I wasn't sure if this was too dodgy, so asked other friends who have recently had a huge amount of work done to their house, and they said they paid for a lot of the labour in cash. But they said when the invoice came in, it clearly stated 'discount for cash', so they didn't think this was dodgy at all.

I understand it's not a good idea to pay cash and have no receipt, as the documentation might be needed if any problems had to be resolved later on.

But what do other people do?

I always pay my decorator by cash. Never had any issues.

I have paid a builder partly in cash and partly by cheque, with full receipt.
He told me that his bank charges for him to take out cash (business account) and to pay in each cheque.

Thanks for the replies, both. What sort of percentage discount would you negotiate for cash?

Offer to pay him by bank transfer?

If you are paying by cash it usually means that you don't pay the VAT which is currently 20%. Obviously it's a bit dodgy, but the risk is all his.

I wouldn't do it be percentage discount I'd figure out what the price was and choose something reasonable. So for £350 I'd maybe do it for £300 etc.

It is illegal tax evasion by the way

I pay by barter :-)