Would you be willing to pay a workman in cash

If it's a bill it's best to pay by visa as you have some protection there if things go wrong. Other jobs around the home I pay by cheque! I love cheques. These tradesmen should not be asking for cash now as they could get into trouble with HMRC if they're found out. The treasury loses billions in income tax through cash in hand payments. The NHS needs it. But I would pay cash for under £50.

re my comment on the Inland Revenue, a friend who works for them tells me they are onto people who exhibit strange spending patterns.

I dont think there anything wrong in paying cash and I dont think cash payment equates to fraud.

I can believe the revenue keep tabs on big spenders eg luxury cars etc but they cannot possibly have the resources to keep tabs on the spending patterns of small one man businesses - anyway I’m now waiting to hear from him as to whether he wants a cheque or BACs so we’ll see what happens next

Dontaskme- did I suggest that you weren’t honest and stole from tax payers because you are self employed? I don’t think so.
I am self employed myself and I’m honest too.
However you surely must agree that it is easier for the self employed who handle cash to ‘hide’ money than for those on PAYE.
As well as avoiding paying the VAT, the dishonest worker would be claiming it back on the items he/she used for the job. He/she would also be avoiding income tax.
If the huge majority of the self employed weren’t honest then the country would be in an even worse mess.

Interesting discussion. My son worked until recently as a self employed kitchen fitter in a two man team. It would have been difficult for him to fiddle taxes or VAT (although he was barely making minimum wage so VAT is not really relevant) as the official price quote was given through the kitchen firm and proper receipts were handed out. However the quotes always stated that the payments should be by cash or bank transfer at the completion of the work, and cheques were not accepted. This was for two reasons, there simply was not enough profit to build up a reserve to cover the time a cheque takes to clear and other workmen, plumbers & electricians needed to be paid, and secondly chasing up payments generally was a massive problem. It was the main reason he stopped the work and trained for a different trade. Every time he had to return to a house to try to get payment, he was spending his own petrol and time and it was very stressful.

I know decent gransnet people pay when things are due, but believe me, not every one is like that!

This was for two reasons, there simply was not enough profit to build up a reserve to cover the time a cheque takes to clear and other workmen, plumbers & electricians needed to be paid, and secondly chasing up payments generally was a massive problem. It was the main reason he stopped the work and trained for a different trade. Every time he had to return to a house to try to get payment, he was spending his own petrol and time and it was very stressful.
I can believe that as I have heard similar stories.

If people are going to be difficult about paying, how does taking cash solve the problem? BACs is now literally instantaneous. Also there are certain jobs where I would always want to be sure everything is working before I paid up by any method. My poor neighbours kitchen was flooded by a wrongly plumbed in washing machine but sadly they had already paid for the work before they used the machine. Also is it really fair to expect someone to have hundreds of £s in cash in the house waiting to be paid over? The insurance cover for cash in the house is typically very small and in addition it’s expecting people to go to the bank
and carry it home - I wouldn’t do that even in the most legitimate of circumstances. But Lyndy your son said he would accept BACs so he was clearly doing things properly -This discussion isn’t about not paying ( which I understand is an issue) but about tradesman wanting cash.

I wouldn't have any work done without a written quotation and evidence of insurance. And I always pay by BACS, the final part after I've signed the work off as being to my satisfaction. It isn't just about tax fiddling, it is so that there is evidence that I have paid.

Worst case scenario: a leak or subsidence becomes apparent a few months later and the contractor denies that it was anything to do with him.

I would pay small jobs in cash ie under £100. I have never been asked to pay that much in cash. I don't think it matters though how you pay. The important thing is a proper business receipt and guarantee. I eouldnt hand that much over without both.

Sorry maryeliza54 I was just trying to explain why some tradesmen insist on cash and not cheques. There seemed to be an instant assumption on this thread that it was because they were fiddling tax or VAT and that is not necessarily true, some are just trying to ensure they have the money to pay their suppliers and co-workers.

I am happy to pay in cash providing I have receipts, a large amount I would pay by transfer. I would have to search to find my cheque book, don't think I have written one in the last 10 years.

If people are going to be difficult about paying, how does taking cash solve the problem? BACs is now literally instantaneous.
You know when the cash is in your hand whereas you would have to trust that the person will transfer the money. I know our plumber (proper quote, proper invoice, we paid in full by cheque) said that he has had difficulty getting the full money from people after a job has been completed and other small businessmen he knows are facing the same challenges with awkward customers.

If people are going to be difficult about paying, how does taking cash solve the problem? BACs is now literally instantaneous (maryeliza54) ... only if the person who owes the money logs in to their bank account and makes the transfer instantaneously!

I had "paying guests" stay in my private guest room recently, the mother and sister of a student who worked locally and a friend had told the student to try me for her families 3 day stay in London. They were Finnish, from a tiny village 3 hours north of Helsinki, they did not speak English at all - we were using Google translate to communicate. They were lovely people and on arrival instantly paid me in cash with brand new £50 notes. There was no way I was going to go into why I wouldn't accept cash and explain the options. So my point is, sometimes it happens that cash is exchanged.

Crossed posts Jalima.

For the pedants, I see the error

And don't let us forget the workwomen

Gk

Try running a business where there is no cash whatsoever.

We only work business to business (on 30 day account) and getting paid is a nightmare. The bigger the business the harder it is too.

Gk
I'm saying nothing because people in glass houses etc.