Why is a quote cheaper when cash payment is offered

mrtazz

Hi,

I am looking to get carpet instalation done for the 4 bed rooms i have. I have contacted several local carpet fitters. The quotes i were given are per square meter. from the same person, i have received a quote for £2 per square meter only i pay cash. if i dont pay cash then £3 per square meter.

I am a little confused why there is a such a difference.

Can someone shine us some light.

mildred1978

mrtazz wrote: »

Hi,

I am looking to get carpet instalation done for the 4 bed rooms i have. I have contacted several local carpet fitters. The quotes i were given are per square meter. from the same person, i have received a quote for £2 per square meter only i pay cash. if i dont pay cash then £3 per square meter.

I am a little confused why there is a such a difference.

Can someone shine us some light.

Because you pay cash he won't put it though the books (so he'll avoid paying taxes on it).

Any other form of payment will have to go through the books and so taxes will be due.

cyclonebri1

mrtazz wrote: »

Hi,

I am looking to get carpet instalation done for the 4 bed rooms i have. I have contacted several local carpet fitters. The quotes i were given are per square meter. from the same person, i have received a quote for £2 per square meter only i pay cash. if i dont pay cash then £3 per square meter.

I am a little confused why there is a such a difference.

Can someone shine us some light.

With all due respect, this is the black economy.

You can go with robbing the chancellor, (us), or pay full wack.

Cards on table, I'd guess 90% plus would go cash in hand, me included, but just figure what the lack of paperwork may cost in the long run.;);)

mkaibear

It's cheaper, as other people have said, because he doesn't want to put it through his books.

The money-saving thing to do is to say "OK, cash is fine".

And then if you have moral issues, have the cash in hand and say "oh, can I have a receipt for this, please"? and wait for a receipt before paying him. (forcing him to put it through a set of books).

...some workmen "allegedly" have two sets of books though, so if you *really* want to be evil you can then send a copy of the receipt to your local tax office going "I paid this chap in cash and now one of my friends said that he might be not paying tax on it and I'm really worried that I've done something wrong"...

...but I'd never suggest such a thing *nonchalant*

rustyboy21

Whilst it is most likely, the carpet fitter wanting cash only, so he doesn't put it through the books, another explanation could be that if you pay by cheque, he will have to pay for cashing it. It could also have the chance of bouncing and he has to try and get the money off you.

If you pay by card, he will also have a charge for taking your card payment, which means he will charge you more.

Most likely though, it is for dodging the accounts.

What surprises me, is how they don't worry about taking cash only, when it could be a set up by HMRC to catch him diddling his tax?