Spending Limits Using Cash

RefluentBeans

electriccactus said:

PHK said:

electriccactus said:

The_Household_Gremlin said:

Does anyone know what is the maximum amount that can be paid in cash for each type of coin/note? Also has it change since 2018?

The maximum is whatever the recipient is willing to accept.

There are rules for legal tender but that is for a very specific scenario, repayment of a debt.

I see this quoted a lot and it’s actually a bit more nuanced than that. But rarely has an effect on day to day transactions. 

Anyone wanting the full facts should look at the Coinage Act 1971 and (in Scotland) Banknotes Act 1954

For the paying of a debt legal tender can’t be refused. (Strictly speaking - a debtor can’t be sued if they pay into court using legal tender even if the creditor insists on another form of payment) No Scottish notes are legal tender as the Banknotes Act made only English notes £5 and under legal tender in Scotland. 

In everyday transactions the buyer and seller are free to AGREE what payment means can be used. If there is no agreement then the default position would be as stated in the coinage act. This is why when someone tries to pay a bill with a wheelbarrow of coins or similar, judges find against them even though the amount is correct. 

It's not nuanced at all, I said legal tender only applies to repayment of a debt, which is what you pasted says.

Guess it’s dependent on the situation. In shops there is no debt, so legal tender can be refused (ie retailer can refuse to sell me a T-shirt for £20 cash; insisting I pay on card). This is probably a bit more complicated when there’s a debt involved. But given most people want a written record of a debt being paid; I think the amount you can pay in certain denominations is kind of pointless. 

It’s the lack of understanding of people who think ‘cash is king’ when in reality most companies who handle cash see it as a hindrance rather than a good thing. 

The rules regarding denominations make logical sense. Retailers who deal in cash are more likely to be flexible to some clientele (we used to have homeless people buy stuff from our store - obviously not going to be rude to someone who’s already suffering and wants to pay) but an influencer who makes a video like ‘I bought a new Tesla and paid all in pennies’ should be told to pay in denominations that make sense - although that would still be possible in pound coins I guess.