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Original poster

Paying a builder in cash

54 replies

stirling · 12/01/2021 10:25

Hi
Quick question - if paying cash, do you physically count out the cash in front of the workman? I have to pay £1100 today and I dont want to stand there looking like a plonker counting out every note, but nor do I want him to take the wad and miscount it.

What do you do if you have to pay cash?
Thanks

OP posts:
EmmaGrundyForPM · 12/01/2021 10:28

Simple
You don't pay cash. You pay by bank transfer.

StephenBelafonte · 12/01/2021 10:36

I hand over the cash in an envelope and say "shall we just count it together to check" and then HE counts it out in front of me

StephenBelafonte · 12/01/2021 10:37

What I mean is word it so that your saying you want him to check in case you've made a mistake (which you won't have)

middleager · 12/01/2021 10:39

What Stephen said. We recently had to count out £2,800 with a workman.

Valkadin · 12/01/2021 10:41

Don’t pay cash as much as amazon and big business are rightly criticised for their dodgy tax stuff a huge amount of money slips under the net with transactions just like this.

EmmaGrundyForPM · 12/01/2021 10:44

@middleager

What Stephen said. We recently had to count out £2,800 with a workman.
So you're colluding with tax evasion? Nice
UnconsideredTrifles · 12/01/2021 10:55

I can't see a problem with just counting it out in front of them to make sure you're giving the right amount.

We had a lot of clients who chose to pay in cash - I don't know whether it was dodgy from their end, for us it was a real faff because we had to pay to put it in the bank, and we made sure we included every penny in the accounts! (Just to say, not all builders receiving cash are tax evaders!) Once we started charging an inconvenience fee, the clients moved to bank transfer...

freezedriedromance · 12/01/2021 11:06

Why would people possibly think paying in cash equates to helping tax evasion?
Plenty of businesses receive cash and its all taxed correctly.

Silkiechickscat · 12/01/2021 11:14

We always refuse to pay in cash as we don't want to support tax evasion / have no receipt. You are usually offered a considerably lower price for cash (c20% off) so fairly obvious why and often they say they are avoiding tax either on job or on wages or both. I know people who offer cash as they say it will get them a cheaper price as the builder will avoid tax and they don't care.

SupportingDoctors · 12/01/2021 11:17

Don’t pay cash. You are just aiding and abetting tax avoidance, and possibly illegal work practices (Archers, anyone?). There is no reason a builder shouldn’t have a bank account you can make an electronic transfer into.

SupportingDoctors · 12/01/2021 11:19

“Why would people possibly think paying in cash equates to helping tax evasion?
Plenty of businesses receive cash and its all taxed correctly.”

Why would any business legitimately want to be paid in cash? It is to avoid tax on the profit, and to then avoid tax on paying workers which in turn means that those workers get no NI contributions and no job protection (and no furlough cash in a pandemic as there is no record of their earnings).

user1497207191 · 12/01/2021 11:20

Most traders seem to offer 20% off for cash - no surprise that VAT is 20%. Some are even more blatant, give you a quote with VAT added and say they'll knock of the VAT if you pay cash. They make out they're doing you a favour by saving "you" the VAT, but in reality, if it's not going through their books, they're saving their tax/nic on it which is more than 20%. So The Treasury probably lose 40% plus. Fine if you want to be a party to tax fraud!

The other point is that you're unlikely to get a receipt/invoice if you pay cash, so no proof about the work done, which causes problems if you come to sell the house or if the work turns out shoddy.

SeasonFinale · 12/01/2021 11:21

The issue with cash is whether he is wanting cash and raising no invoice to you or wanting cash with no invoice ie. cash in hand. If so this would give you no recourse to the courts should there be any issue with his work in the future as it would be classed as an illegal contract and thus unenforceable.

Jonahroo · 12/01/2021 11:24

We said no to any builders we had quotes from who said they wanted cash. Honestly we would be paying them 30kish and they wanted it in cash.

Original poster
stirling · 12/01/2021 11:54

StephenBelafonte and middleager thanks for the advice.

OP posts:
Original poster
stirling · 12/01/2021 12:01

He's a registered electrician and will be signing off with certificates. He didn't ask for cash, I chose to because my lodger had paid me twice in cash and I want to get rid.

OP posts:
senua · 12/01/2021 12:05

What do you do if you have to pay cash?
It doesn't matter who does or does not count it. The important thing is that you get a receipt for it. You want to be able to prove that you paid the money (make the receipt out to say 'full and final amount'). You want to be able to claim on any warranties or guarantees.

But, yeah, cash is not good. It is probably VAT-evasion.

senua · 12/01/2021 12:05

X-post

PresentingPercy · 12/01/2021 12:06

Are banks not open?

Respectabitch · 12/01/2021 12:09

I just would not. I want an electronic paper trail for any large payment for risk management purposes and would not deal with anyone who won't accept a bank payment.

I would deposit your cash (which will be instantly available because, cash) and do a bank transfer.

ZeroFuchsGiven · 12/01/2021 12:10

@freezedriedromance

Why would people possibly think paying in cash equates to helping tax evasion? Plenty of businesses receive cash and its all taxed correctly.
This!

These threads really get on my wick, I often get paid in cash that does not mean I am avoiding paying tax, it just means its a pita I have to go to the bank.

StephenBelafonte · 12/01/2021 12:11

Why would people possibly think paying in cash equates to helping tax evasion? Grin @freezedriedromance
Its a mumsnet myth, along with "self employed people can't get mortgages" Grin

user1497207191 · 12/01/2021 12:13

@stirling

He's a registered electrician and will be signing off with certificates. He didn't ask for cash, I chose to because my lodger had paid me twice in cash and I want to get rid.
Cash is always risky. Even if you both count it together, there is the risk he will come back and say one or more of the notes was refused by his bank as being fake. I've been caught out like that and it becomes your word against his.

You'd be far better paying the cash into your bank account, you can do it at most bank cash machines or a post office. Then you can pay your tradesmen properly by bank transfer to maintain the audit trail.

GrumpyHoonMain · 12/01/2021 12:26

If you can do avoid it. But if unavoidable you should just count it slowly in front of him. Seperate notes in their denominations and label them seperately with amounts. Then ask for an invoice

UserEleventyNine · 12/01/2021 15:05

Seperate notes in their denominations and label them seperately with amounts. Then ask for an invoice

A receipt, not an invoice. An invoice tells you how much you owe, a receipt says it's paid.

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