Tradesman wanting 50% in cash

albie172

Hi all, I've had a quote for installing a new boiler from someone recommended by the management company of my block of flats. The price seems fair, and he also gets good reviews on things like checkatrade. 

When I spoke to him to confirm I would like to proceed, he asked if it would be ok if I paid the deposit - 50% of the job - in cash. He was honest about not having to put it through the books and charge VAT and that it would be for the materials. He also only wants the money a day or two before the job. 

I'm a new homeowner, so grateful for advice on this matter. Should I be worried? Also, I feel uneasy with any legal/moral implications of working like this - although I believe paying in cash for building work is not uncommon.

TELLIT01

Contact the management company and ask (a) is that normal practice and (b) do they vouch for the trader and will cover the loss if he does a runner.

grumbler

Is the quote for the labour only or for the boiler as well?
Personally, I don't care about cash, but I wouldn't pay anything in advance for the labor. 

comeandgo

The deposit is 50 % and cash, no way.  You mention he is installing the boiler, is he also providing it as you say he needs the money for materials?  If he is not supplying it and there is a problem with the boiler you are then left in the position of trying to work out who to complain to, the boiler manufacturer can refuse any assistance if not fitted by a recommended fitter.

comeandgo

albie172 said:

Hi all, I've had a quote for installing a new boiler from someone recommended by the management company of my block of flats. The price seems fair, and he also gets good reviews on things like checkatrade. 

When I spoke to him to confirm I would like to proceed, he asked if it would be ok if I paid the deposit - 50% of the job - in cash. He was honest about not having to put it through the books and charge VAT and that it would be for the materials. He also only wants the money a day or two before the job. 

I'm a new homeowner, so grateful for advice on this matter. Should I be worried? Also, I feel uneasy with any legal/moral implications of working like this - although I believe paying in cash for building work is not uncommon.

Paying for cash for anything is not uncommon but to be told it’s because he will not be declaring all to reduce vat is you aiding and abetting fraud.

FreeBear

I've just splurged on a new boiler. Paid the full amount up front, but on credit card (a tad miffed that they took the money before starting the job).. As it is on credit card, i have additional protection if the company goes bust or they fail to deliver.

Paying for it in cash, no way !

victor2

albie172 said:

Hi all, I've had a quote for installing a new boiler from someone recommended by the management company of my block of flats. The price seems fair, and he also gets good reviews on things like checkatrade. 

When I spoke to him to confirm I would like to proceed, he asked if it would be ok if I paid the deposit - 50% of the job - in cash. He was honest about not having to put it through the books and charge VAT and that it would be for the materials. He also only wants the money a day or two before the job. 

I'm a new homeowner, so grateful for advice on this matter. Should I be worried? Also, I feel uneasy with any legal/moral implications of working like this - although I believe paying in cash for building work is not uncommon.

Won't put it on his tax return either, so won't pay tax or NI on it. Selective honesty! 

jefaz07

comeandgo said:

The deposit is 50 % and cash, no way.  You mention he is installing the boiler, is he also providing it as you say he needs the money for materials?  If he is not supplying it and there is a problem with the boiler you are then left in the position of trying to work out who to complain to, the boiler manufacturer can refuse any assistance if not fitted by a recommended fitter.

No they can’t! As long as it’s fitted to MI’s it doesn’t matter who fitted it, approved or not. 

As long as they’re GSR

gambleruk

Why not pay the 50% up front on your card then the remainder in cash once the job is complete ? Seems the logical solution to me.

CliveOfIndia

gambleruk said:

Why not pay the 50% up front on your card

If the guy is asking for cash and has admitted it won't go through the books, I very much doubt he'd accept a credit card.  Even more so when you factor in the card fees he'd be charged.

victor2

jefaz07 said:

comeandgo said:

The deposit is 50 % and cash, no way.  You mention he is installing the boiler, is he also providing it as you say he needs the money for materials?  If he is not supplying it and there is a problem with the boiler you are then left in the position of trying to work out who to complain to, the boiler manufacturer can refuse any assistance if not fitted by a recommended fitter.

No they can’t! As long as it’s fitted to MI’s it doesn’t matter who fitted it, approved or not. 

As long as they’re GSR

But all the longer warranties I've seen (typically 10 years) require that the boiler is installed by an approved installer and serviced annually, otherwise you only get the standard 12 month warranty.