Would you be willing to pay a workman in cash

I'm not against cash payments - I've been happy enough to accept them myself in the past - but £4,000 seems much too much.

There seems to be a lot of confusion regarding VAT - Only paid if your company turn over is £85,000+pa. Workers on new build property don't charge VAT as its zero rated, so don't assume that I'm complicit in some illicit dealing or other.
mcem -Who knows if income tax is paid or not? It's none of my nor anyone else's business what anyone does with their income.
Google Amazon and secret offshore deals? No idea what this has to do with anything and could care less tbh.
Jalima - seriously, "If a workman quotes £4,000 then you should have received a proper quotation, itemised and the amount of VAT should be quoted too." Depends what the quote is for actually. VAT as above. I don't deal with "suspicious" people. Doubt your window cleaner makes enough to have to pay VAT.
Welshwife - No, my bank never question why I want to take MY money out, nor ask what its for. They don't have to "allow" me to get my money, its mine to do with as I please, so if yours stick their nose in change your bank!
SpanielNanny as I said you have to earn £85,000+pa before you pay VAT so, all due respect, I doubt your window cleaner pays.
It's never rude to ask about paying cash and I always do.

Some traders are not VAT registered.
A lot of workmen now like you to put the money straight into their accounts.
I always find out how they want to be paid before they do the work.
If they say they are not VAT registered you have to take their word, but if you use ‘trusted traders’ or similar then you don’t get taken for a mug.

I was not primarily concerned with vat as so many small businesses do not have to be vat registered but I believe it is my business if people dodge paying income tax where it's due.
Like it or not that affects all of us!

In that case Dontaskme, I retract my previous statement that I trust my window cleaner to pay VAT. I highly doubt that the £18 a month I pay him contributes enough to him earning £85,000 a year

I think the confusion over banks asking questions about your money comes from if you want to buy a house. When my ds & dil bought their house a few years ago they had to provide evidence of where the money for their deposit came from (statements of their savings building up were fine). This is to prevent money laundering. As others have said, how you spend your money is nobodies business.

Cash is perfectly legal tender so if you want to pay a work person cash that’s up to you. I would probably pay up to a couple of hundred in cash, but a larger sum I would expect to do a bank transfer.

For a large sum, no. I asked a company we used at work for a quote for a major work project on our house. One of the workmen called round with it and said that of course I could have 10% off for cash. We chose them because it was a decent quote anyway and I knew they would do a good job. It made me smile when the owner, who I’d always dealt with, made a point on completion of saying that he was sorry he couldn’t offer us a discount for cash because they’d never do that sort of thing.

Can’t believe those condoning paying “cash” when the very same people would jump down the throats of tax avoiders !

Double standards ? Yup you bet !

Over the past few months I’ve used an electrician, a plasterer and a carpenter. All delivered perfect work, to time and discounts for cash were never mentioned. I sort of feel that going down that road would be undermining these decent hard working people - I don’t want them and other workmen undercut by those who must have a dubious reason for wanting cash - who therefore not only harm the livelihoods of others but cheat the revenue.

I think paying cash is encouraging others to cheat the system and makes you complicit in the deal. Why tempt people to cheat by asking for discount for cash payments dontaskme?

(My window cleaner charges £25 each time so I also think whizzing round as he does means he would be carrying a lot of cash plus it means we both know whether I have paid or not as he doesn't have time to give receipts)

I pay cash in Tesco sometimes - is that condoning tax avoidance? Paying cash to whoever you like is perfectly legal, but I wouldn’t pay a four figure sum in cash.

I think you’ll find when you pay cash at Tesco you are given a full printed receipt with VAT number . The amount paid would also be fully registered in their computerised till systems . Slightly different to some dodgy builder or the likes shoving his pound notes straight into his big fat wallet .

What about those who lose a job because the client employs someone who takes cash in hand? It is very tempting to go the cash in hand route when you find yourself losing out on work.

My gardener and window cleaner send monthly invoices which I pay by bank transfer.

Sorry but it’s really silly to use the example of paying by cash in Tescos. We all know that paying by cash is legal but it’s the motive of the tradesman some of us are questioning in this type of scenario.

I think it depends on the circumstances. I am with Dontaskme, in that it is none of my business why someone wants cash. At the same time I do believe strongly that everyone should pay all their tax.

However, I have rarely paid anyone a significant sum in cash, it is usually small jobs, like window cleaning or gutter cleaning or something like that.

Absolutely, I’d have no problem, can’t say it would be any of my concern.
A figure agreed is a figure agreed.

I mentioned Tesco as some people were implying cash transactions akin to tax avoidance, what about certain coffee chains? Those cash only nail bars and car washes? Surely it’s down to the work person to deal with their own tax affairs not the customer. If you don’t want to pay cash you don’t have to. I wouldn’t pay any more cash than I could draw out of the cash machine in one transaction.
Talking of payments on a different tack we went to the supermarket on Friday and there were piles of trolley loads of shopping left by customers whose Visa cards hadn’t worked. So many people don’t carry cash anymore.

We pay large bills by cheque because then you have a record of the payment

jalima you have a record of payment if you pay by BACS. The amount and the name of the recipient appears in your bank statement, unlike a cheque which just appears as the cheque number.

Bank transfer yes. Cash no, Not these days.

I would have no problem paying cash if I get a proper invoice.
I am a beauty therapist and my charges start at £5.50. I accept cash, bacs and cheques. I’d rather have cash for the smaller amounts because a cheque costs me 75p. Cheques make it easier to do my accounting and on a more expensive treatment it doesn’t eat into the profits too much.
On £2000it would be negligible. Too much cash is a pain to deal with because I don’t pay many of my bills in cash and I have to pay to deposit cash too.
I’m not registered for VAT as like many small businesses my turnover these days doesn’t come up to the threshold.
I do, and always have, paid my taxes.
If I and many others like me weren’t honest we would be stealing from YOU.
I think that if you pay a large bill, without a proper invoice, in cash then you are helping to steal from all of us.
Sorry if that upsets some of you but our services need to be paid for.

Good luck enforcing a guarantee given for work paid for in cash without a receipt given

Just be wary of stuff that doesn’t “go through the books”

I'm utterly flabbergasted at the number of people who think that self-employed people who accept cash must be dodging the system.

"Dodgy builder" - never used one and I wonder how many builders would take offence at the suggestion that they are dodgy.

I own 2 businesses (sleeping partner now but far from silent ), and have always been more than happy to accept cash payments. In turn I have cash knocking about that I pay other people with. I do my tax return every year and have never "fiddled" anyone.

I'd like to know where I said that I didn't get either a revised invoice or a receipt? Did I say that?

I have never stolen from anyone, thanks very much!

Funnily enough there was an item on the news this morning about the number of banks that are closing, which means people can't get cash out easily and the knock-on effect this is having on small business' who only accept cash. There was a fruit and veg shop man who only takes cash, some sort of cheese lady and others - are they automatically fiddling the system then?

I've just realised that my story of selling something for cash was a bad example. It was nothing to do with business, and mainly to avoid a possibly dud cheque.

Maryeliza54 How happy would you be walking around with two thousand pounds in your pocket to give to him?
If, like me, you are over 60 and built nothing like Arnie, it can be a worrying exercise collecting that much from the bank and taking it home with you. I've had to carry large amounts of cash now and then - white knuckles all the way!