Wages paid into the bank?

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neo1607
neo1607 Posts: 143 Forumite
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in Employment, jobseeking & training
Not too sure which category this should be under.

Currently due to the job I am in it's a cash business (fruit machines, jukeboxes etc) so it makes sense for my boss to just pay us all cash every week (with wage slips etc). It hasn't really affected me until now as I'm paid at 9am every Monday morning and I deposit them straight in around the same time every Monday morning

I'm applying for a mortgage and after speaking to my mortgage advisor he's recommended that I ask for my wages to be paid direct into my bank via BACS as it opens up more lenders. Apparently there's some that are fine with seeing cash deposits but some require salary to be BACS

I've mentioned this to my boss but as that is the way they have paid the wages for the last 40+ years he is refusing to change the system now end of discussion even though I have tried explaining that it can affect my chances with certain lenders

Is there any way around this to show that its my salary going in? Can I request the bank put a reference saying it's from my employer or something?

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  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    It seems odd that he is being difficult about not paying you directly into your bank account since almost everyone does have internet banking these days.

    What does your contract say about payment? Could you use your wage slips to get a mortgage?
  • neo1607
    neo1607 Posts: 143 Forumite
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    OliviaPearl wrote: »
    It seems odd that he is being difficult about not paying you directly into your bank account since almost everyone does have internet banking these days.

    What does your contract say about payment? Could you use your wage slips to get a mortgage?

    Don't think my contract mentions which method of payment would need to double check. I think it's more just for ease, the cash is there so it's easier to just pay everyone cash I suppose, I've been here 3 years so it's never really been an issue before

    The advisor did say I can use my wage slips and P60's to apply no problem. It just limits lenders as a lot of them prefer BACs. Not too sure all the ins and outs
  • Undervalued
    Undervalued Posts: 8,852 Forumite
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    OliviaPearl wrote: »
    It seems odd that he is being difficult about not paying you directly into your bank account since almost everyone does have internet banking these days.

    What does your contract say about payment? Could you use your wage slips to get a mortgage?

    Maybe not "odd" for a small business if their income is entirely in cash. They almost certainly have to pay bank charges / cash handling fees on all bank deposits so may be trying to minimise that by paying wages and other bills in cash.

    I assume the OP is getting proper PAYE pay slips with tax and NI deducted each week and a P60 each year? If so the employer is doing nothing wrong.
  • neo1607
    neo1607 Posts: 143 Forumite
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    Undervalued wrote: »
    Maybe not "odd" for a small business if their income is entirely in cash. They almost certainly have to pay bank charges / cash handling fees on all bank deposits so may be trying to minimise that by paying wages and other bills in cash.

    I assume the OP is getting proper PAYE pay slips with tax and NI deducted each week and a P60 each year? If so the employer is doing nothing wrong.

    Yeah it's all above board. I get PAYE slips weekly and P60 at end of each year. It's just frustrating that it's making an effect on my mortgage process and my boss won't budge with the payment method

    Is there any way I can pay it in branch and request the bank reference it as my employers name or anything like that?
  • BoGoF
    BoGoF Posts: 7,099 Forumite
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    To be blunt....it's not your employers problem. There is no requirement for him to pay by BACS so if he says no then you are stuck with the lenders who accept your situation.
  • Undervalued
    Undervalued Posts: 8,852 Forumite
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    neo1607 wrote: »
    Yeah it's all above board. I get PAYE slips weekly and P60 at end of each year. It's just frustrating that it's making an effect on my mortgage process and my boss won't budge with the payment method

    Is there any way I can pay it in branch and request the bank reference it as my employers name or anything like that?

    Well you could obviously pay the full amount into your bank account each week so that you have a deposit matching each wage slip. However you can't ask the bank to falsify where it came from.

    As long as you have evidence of how much you are being paid each week I am surprised it is a problem. Ultimately there is nothing you can do about it if the employer is unwilling to pay by BACS and insists on paying by cash as they are doing nothing wrong.
  • neo1607
    neo1607 Posts: 143 Forumite
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    Like I said, it's not stopping my application at all, it's just limiting certain lenders/rates.

    Thanks for the advice everyone
  • DoctorStrange
    DoctorStrange Posts: 384 Forumite
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    Not to sound too cynical or to derail the thread, but a friend of mine was paid in cash for years and thought it was all above board with the payslips, P60 etc. However, it turned out his employer was faking those documents and pocketing his taxes...

    I'm sure that's not the case here but with it being so easy to check your personal tax account online I'd be tempted to double check just to be on the safe side...
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