tenant paying cash

Old_Git

My tenant has asked to pay the rent in cash every two weeks .
I dnt mind this however what safeguards do I need to put in place for HMRC .I have always had rent paid straight into the bank .I know the tenant ( a hardresser )gets paid in cash.

gazter

Why not give her a stack of paying in slips for your bank. And let her pay in cash to the bank.

She wants to pay in cash because of one of two things (or a combination of these):
i) She doesnt declare all of her income.
ii) Paying in cash to a business account can get very expensive, its easier to minimise what she has to pay in by using the cash to pay as much of her living costs as she can.

Old_Git

she dosent own the business .She gets paid cash (taxable ) on fridays .
She wants to pay me on Fridays after work ,in cash

G_M

You have 3 choices:

1) accept cash, either directly, or via a paying-in slip to your bank

2) insist on a Standing Order or bank transfer (she might refuse - cash is a valid currency!)

3) accept cash and then contact

https://www.gov.uk/government/organisations/hm-revenue-customs/contact/reporting-tax-evasion

bigfreddiel

Cash is King!

Cheers fj

Mossfarr

My tenants used to pay me in cash even though the tenancy agreement clearly requested payment by standing order. They said it was because they had switched banks and it was taking time to sort out the standing orders.
It was a real pain to be honest, they used to turn up at really inconvenient times because they would just call in as they were passing my house. I'd have visitors or be having dinner or going out and they would want to stay chatting for ages.
I felt that they were taking control of my life, I couldn't plan to go out in case I missed them calling and they used it as an excuse not to pay the rent.
Thankfully things settled down and they now pay by standing order.

Rambosmum

just get a receipt book, the carbon copy type.

Are you receiving more than the rent a room allowance?

anselld

Rambosmum wrote: »

Are you receiving more than the rent a room allowance?

Relevant only for lodgers, not tanants.

gazter

Old_Git wrote: »

she dosent own the business .She gets paid cash (taxable ) on fridays .
She wants to pay me on Fridays after work ,in cash

You will find that many hairdressers are self employed and they pay for a seat in a store. This may or may not be the case. It's her business of course what she does and how she pays tax. But as the other poster pointed out, its actually a bit of a pain if she comes to you every two weeks to pay you.

That's why companies like DD and SO. Once set up they just carry on, there is no interaction or missed payments (unless something goes wrong) by accident. Ultra low maintenance.