requiring payment in cash

wolfehouse

i had a new kitchen installed and finally, after lots of remedial work,it is finished 3 months late.

the bill is split into 2 parts- one to the 'kitchen company'- who will take a cheque for their part of the money owed.
the other bit is for the installer- who is demanding to be paid over £1000 in cash only. he says his own company is not yet set up with a bank account... but swears he is not avoiding tax or anything else illegit.

Is it right (or common) for him to demand payment by cash only?

(thanks for any thoughts- just trying to avoid any more trouble really)

Smiley_Mum

How about paying him in another three months? Why should you pay him cash, NOW? Wait three months and see what he says? Tell him you'll pay in instalments over a three month period.

Avoid dealing in cash!!!

roswell

Id say "he" isnt a company and isnt paying tax so in that case id not pay him cash and possibly make a phone call to inland revenue ...

Solar1

If you pay cash and he forgets your receipt , how will you prove that he did the work if anything goes wrong. Been down this road before, pay cash , contractor says he will put receipt in post, when problems arise no proof that a contract exists or how much paid. A quote does not constitute a contract.

The excuse about the bank account is rubbish. He must have a bank account of some sort, why can't he accept a cheque and pay it into his personal bank accout and then transfer it when his business bank account is opened.

Also you say that it has took three months to complete the fitting. It does not take 3 months to open a bank account. Did he specify at the time to agreed to his services that he would only take cash and what was the reason then.

When you brought the kitchen did the kitchen company say they would fit it or did you have to find your own fitter. If you had no choice and they sent someone to fit it then surely your contract is with the kitchen company and you should be able to pay them for the fitting and they can pay the fitter.

PM me if you need more info.

Smiley_Mum

Ask him for a VAT receipt, then check with the Inland Revenue. Sounds like he knows something you don't, cash for him, cheque for "The Kitchen Company". Very suspicious.

Here is info, it's regarding builders but would apply to most tradesmen I would imagine...

http://www.northlincs.gov.uk/NorthLincs/Business/buildingregulations/choosingabuilder.htm

misgrace

Has he given you the bill in writing?, has he added on the VAT, i would be very suspicious, like the solar says if you pay in cash you have no comback.
Tell him you want the receipt up front, and pay him by cheque, you are still paying him whether its cash or cheque, its his problem if he wants cash, there is definately something dodgy going on.

oldandhappy

We where quite happy to pay cash for our new roof over Conservatory. They where really good workers and pleasant to boot.....When it rained there was a small leak which we reported back to them with a promise it would be rectified...They never came back and the receipt never arrived as promised either. The Company is no longer in business although the advert is still up and running on the Internet. It is easy to trust nobody now. Mrs. H

Bossyboots

I see no reason not to pay in cash if he produces a receipt with all his company details on it at the time of payment. I agree that no money should be handed over without such a receipt and if it were me, I would apply that to a cheque payment as well.

Also agree with Solar1 about the contract side of this. That is something that needs clarifying before any payments are made to the fitter.

baldelectrician

As a trader I accept any method payment (excluding sheckles )
Ask to see his inland revenue self employment card. I have one and most sole traders carry them.

Don't get me wrong cash is nice, but not essential- makes things a little easier.

Smiley mum
Ask him for a VAT receipt, then check with the Inland Revenue. Sounds like he knows something you don't, cash for him, cheque for "The Kitchen Company". Very suspicious.

Here is info, it's regarding builders but would apply to most tradesmen I would imagine...

VAT registered
Only a very small builder (one or two men!) can avoid registration. Remember, even unregistered builders still have to pay VAT on materials, tools and equipment, vehicles and their running costs.
The difference in price between a VAT registered builder and a non - registered builder is much less than you would expect. If the builder is not registered he will be passing the VAT on as a cost. VAT free is a myth.

This myth is a pile of poo.
Example:
If I am vat regd I do a job for £35 + vat = £41.13
Materials (say £1.80, labour 1 hour), so I calim vat on
£1.80 (27 pence) but charge vat of £6.13= net loss to me £5.86.
Same senario:
Same job £35 = £35 and no vat.
Remeber the threshold is £61,000, so if I turnover less than this then VAT is volountary.
As a sole trader this is a no brainer as I ONLY do domestic work and vat prices me out of the game.

robby-01

Why should he accept a cheque from you for that much money.Your cheque could bounce, he runs the risk of you putting a stop on it the minute he leaves your house.I am not implying that you would do that but people have.You cant walk into a shop and buy goods for that amount with just a cheque.
This guy has every right to ask for payment in cash if thats how he wants it.
Equally you have a right to request a reciept as proof of payment just as you would in a shop and like a shop he is obliged to provide one.
If you are happy with the job you should obtain a bill of sale from him and pay him. Dont pay him until you get one.
What he then does with the money is his business .

bella123

robby-01 wrote:

Why should he accept a cheque from you for that much money.Your cheque could bounce, he runs the risk of you putting a stop on it the minute he leaves your house.I am not implying that you would do that but people have.You cant walk into a shop and buy goods for that amount with just a cheque.
This guy has every right to ask for payment in cash if thats how he wants it.
Equally you have a right to request a reciept as proof of payment just as you would in a shop and like a shop he is obliged to provide one.
If you are happy with the job you should obtain a bill of sale from him and pay him. Dont pay him until you get one.
What he then does with the money is his business .

I guess you are a tradesman.:eek: :eek: