Is it wrong to pay tradesmen in cash

  hssutton 23:10 26 Jan 2012

I always pay the gas fitter in cash who services my gas appliances.

"Paying cash in hand is 'diddling the country', says HMRC's Dave Hartnett"

enter link description here

  Forum Editor 23:27 26 Jan 2012

Is it wrong to pay cash?

Of course it's not, provided you don't do it in order to avoid paying VAT, or because your builder has told you he isn't paying tax.

You pay cash when you buy things in shops, and nobody suggests that it's wrong, so why should it be wrong to pay a plumber in the same way? It's up to the plumber to provide you with an invoice that includes VAT if he's registered for it, but how you pay is up to you.

Dave Hartnett knows that tax evasion goes on, and he knows that cash payments can be an attractive proposition for a householder who is offered a 'discount for cash'.

  spuds 23:30 26 Jan 2012

There's nothing "wrong to pay tradesmen in cash", because this can bring benefits to all parties, providing it is accountable!.

But the link seems to say more than that, and possibly or perhaps more to do with one person and there pending retirement?.

  bluesbrother 23:43 26 Jan 2012

"Dave Hartnett knows that tax evasion goes on", bit of an understatment that.

MPs attack HMRC's 'cosy' deals with big business

Sounds like a man with his back to the wall.

  Condom 00:41 27 Jan 2012

Again there is absolutely nothing wrong with getting a discount for paying with cash.

It is not the payer's responsibility to ensure that suppliers account for their tax liabilities. My only warnings to cash payers is that shoddy workmanship might leave you with little chance of resolving it and don't get caught out by suppliers charging you for VAT when they might not be registered for it. Make sure you get a proper bill and a receipt.

  robgf 01:17 27 Jan 2012

Everybody assumes that if your self employed and paid in cash, you are on the fiddle, which I suspect is rubbish in most cases. If you don't put your earnings through the books, what are you supposed to do with them. Put it in your bank and the difference between your takings and your bankings will stand out like a sore thumb.

I suppose if you drink, smoke and gamble, you can dispose of unrecorded income, but apart from that, I would be at a loss. You could buy lots of new goods, but it will be noticed if you are living a £30,000 lifestyle, with a $10,000 income. A colleague of mine was checked by the HMRC ten years, or so ago and they were very, very thorough. He nearly had a breakdown and he hadn't done anything wrong.

I prefer to be paid in cash, but only because it saves me the hassle of paying in cheques.

  BT 08:46 27 Jan 2012

Many tradesmen prefer cash as its cheaper for them.

My neighbour is a self employed carpet/flooring contractor and prefers cash if possible. It costs him every time he pays in a cheque to his business account and having Credit card facilities is not financially viable. He makes best use of his Tax breaks by replacing his van on a regular basis, and his car is registered to his business.

I have no problem with cash payment and as long as it all above board you cant't blame people for minimising their costs.

  Strawballs 09:41 27 Jan 2012

My bank does not do cheques any more and small one man tradesmen can't handle cards when mobile so cash is the only way!! Some of these people that come out with these staements don't live in the real world.

  SparkyJack 11:33 27 Jan 2012

Robgf wrote

I prefer to be paid in cash, but only because it saves me the hassle of paying in cheques. -----------------------------o0o-------------------------------------------------

My disabled daughter lives a distance away and I cover her home maintenance matters - Plumber 'builder etc.

In each case they are happy to pass their bank detail me and I make a direct electronic cash transfer - it is in their account within hours. As to how they handle their tax matters is up to them

  Flak999 12:17 27 Jan 2012

If a tradesman is prepared to offer me a 20% reduction in payment for goods or services if I pay in cash then I will say "thanks very much."

How he manages his tax affairs is no concern of mine!

  BT 13:05 27 Jan 2012

My bank does not do cheques any more

Which Bank is that then? As far as I know all banks still handle cheques.

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