Proposal to ban cash payments?

[Gavin John Hyde]

On radio last night they were discussing the idea that the tax man might ban cash payments for tradesmen/women.
The idea is that for jobs over a certain amount you would have to take card/cheque or bacs transfer. It will also stop cash in hand for a lower fee
They are supposedly going to be doing this in some continental countries and the UK are considering it.
Personally, I now use a card reader (£30 cost )and take chip and pin, it saves going to the bank and links in well with quickbooks. I pay a o.75% transaction fee.
What do people think about possibly going to cashless system? If you are not fiddling the books i guess you got no complaints but if you do the odd job on the side it could impact you.
Cash-in-hand payments could be banned in the Spring Statement | Daily Mail Online - http://www.dailymail.co.uk/news/article-5497783/Cash-hand-payments-banned-Spring-Statement.html

 

[MDJ]

It wouldn't bother me to be honest, I was always squeeky clean and never hid anything, but I don't think banning cash payments is the right thing to do at all.

 

[Jay Sparks]

It will be interesting to see how they would Police this! How do they know you have been paid in cash and how much it was? Are they going to stop people going down to the bank and putting money in their account? I just can't see it working.

Jay

 

[Octopus]

Can't see how cash payments can be stopped....

That said there are few actual checks on the 4 million self employed ......

 

[Christopher Bernard]

As someone who has a card reader, was it a difficult process to get one? I speak as someone who's been intrigued by part of your post. The limit from reading the post is £13,000 which to be fair is pretty high.

 

[Gavin John Hyde]

As someone who has a card reader, was it a difficult process to get one? I speak as someone who's been intrigued by part of your post. The limit from reading the post is £13,000 which to be fair is pretty high.

to get a card reader i went on the sum up website paid my £29.99 and it came in post 3 days later, can start taking card payments via chip and pin or contactless for very small little jobs. money goes into bank account within 3 days and fees are around 0.65-0.75%.

 

[telectrix]

Cash is King. Long live Cash.

 

[Pete E]

On radio last night they were discussing the idea that the tax man might ban cash payments for tradesmen/women.
The idea is that for jobs over a certain amount you would have to take card/cheque or bacs transfer. It will also stop cash in hand for a lower fee
They are supposedly going to be doing this in some continental countries and the UK are considering it.
Personally, I now use a card reader (£30 cost )and take chip and pin, it saves going to the bank and links in well with quickbooks. I pay a o.75% transaction fee.
What do people think about possibly going to cashless system? If you are not fiddling the books i guess you got no complaints but if you do the odd job on the side it could impact you.
Cash-in-hand payments could be banned in the Spring Statement | Daily Mail Online - http://www.dailymail.co.uk/news/article-5497783/Cash-hand-payments-banned-Spring-Statement.html

They have already done it in the scrap metal business to try to make it more difficult to dispose of stolen copper etc...

 

[Pete E]

to get a card reader i went on the sum up website paid my £29.99 and it came in post 3 days later, can start taking card payments via chip and pin or contactless for very small little jobs. money goes into bank account within 3 days and fees are around 0.65-0.75%.

Have you found using a Card Reader has reduced the number of late payers etc as they can be charged on the spot so to speak?

 

[Gavin John Hyde]

Have you found using a Card Reader has reduced the number of late payers etc as they can be charged on the spot so to speak?

unless it is a regular customer such as a landlord i work for who i invoice on a monthly basis and trust to pay me or other known customers, everybody else is payment on presentation of invoice/job completion. 90% of my work is domestic so customers have been fine paying via chip and pin on job completion so no late payers, I also like the fact it means i dont have to pop into town to the bank and park etc.. the <1% commission is less than the parking fees would be.

 

[Octopus]

Our window cleaner swapped cash for bacs payments about 5 years ago .........................

 

[stevethesparks]

I just bank it, whatever the amount, and it goes in my excel accounts page as "paid in cash" not worth the hassle to save a few bob.

 

[Squid]

Damn, no more cycling around London with £20k in £50's to pay the builders...........

 

[westward10]

Cash is King. Long live Cash.

Pat or Johnny.

 

[Gavin John Hyde]

Damn, no more cycling around London with £20k in £50's to pay the builders...........

£50's... the government are looking into scrapping them.... so spend them whilst you can!

 

[Squid]

£50's... the government are looking into scrapping them.... so spend them whilst you can!

I already did about £70k's worth lol

 

[FatAlan]

They’d have to ban cash. Simples!

 

[EbolaSideRoom]

As a (mostly) domestic sparks who prefers to email invoices and receive BACS payments online it’s unlikely to make any difference to me. The most I’ve ever accepted in cash was +\- £1k and that still went into the bank. Although I begrudge being charged to pay cash in I’m also charged for submitting cheques. I’d consider a card reader though...
OP, do you accept debit and credit cards, or debit cards only?

 

[FatAlan]

Masses of ways to deal in money. Get paid in Amazon vouchers, other retail vouchers, swap for other services etc. Let’s face it the banks have to adhere to strict money laundering regulations and make hundreds of suspicious activity reports to law enforcement agencies every day with the majority ignored due to lack of resouces. Law abiding joe bloggs is an easy target. Big business spends most of it time avoiding tax by one scheme or another. We need taxes but as soon as things get tight people start to get very imaginative.

 

[Gavin John Hyde]

I’d consider a card reader though...
OP, do you accept debit and credit cards, or debit cards only?

I can take any debit/credit card including Amex, I wrangled a introductory offer for first year at 0.75% fee, it can be between this and 1.65%. but when i factor in parking to go to the bank, fees for paying in cash and time/security, i see the fee as worth it from my view. I use sum up as its cheaper than paying a couple hundred for one of the old school card terminals that print receipts like you get in shops.

 

[Octopus]

What I object to are the charges that banks charge me for paying in cheques and cash

Cheques - I use their machine

Cash - I pay into my personal account (no charge) then BACs it into my business account

 

[plugsandsparks]

Does not affect me. I get the odd cash payment , dont bother paying it into the bank, just show it in quickbooks. cheques are a pain in the arse and cost me a small fortune to process. They should ban cheques.

 

[telectrix]

They should ban cheques.

more to the point. they should ban banks. robbing bar stewards.

 

[sparksburnout]

What I object to are the charges that banks charge me for paying in cheques and cash

Cheques - I use their machine

Cash - I pay into my personal account (no charge) then BACs it into my business account

 

[Des 56]

Say what you like about cash, there's no denying,getting a thousand in £20 notes to stuff in your pocket feels great
A lot better than looking at the numbers on a screen a couple of days later

 

[sparksburnout]

Say what you like about cash, there's no denying,getting a thousand in £20 notes to stuff in your pocket feels great
A lot better than looking at the numbers on a screen a couple of days later

It's not safe to do that, you might get robbed on your way to the bank, you know, to pay it in.

 

[telectrix]

It's not safe to do that, you might get robbed on your way to the bank, you know, to pay it in.

who says you going to pay a grand into the bank? keep it in house. beer and smokes for the next 3 months.

 

[sparksburnout]

who says you going to pay a grand into the bank? keep it in house. beer and smokes for the next 3 months.

Too right. Stuff Dracula.

 

[Des 56]

It's not safe to do that, you might get robbed on your way to the bank, you know, to pay it in.

Na sparks burnout,no chance of that,too many years spent cuddling wads of them,that is until they reside nice and comfortable in my home

There is no chance of them wandering into other peoples clutches,if someone decided to try and rob me,they had better be prepared for the stakes to be the winner lives

 

[telectrix]

what's my uncle drac got to do with the thread?

 

[telectrix]

Na sparks burnout,no chance of that,too many years spent cuddling wads of them,that is until they reside nice and comfortable in my home

There is no chance of them wandering into other peoples clutches,if someone decided to try and rob me,they had better be prepared for the stakes to be the winner lives

agree. a kop end kiss or a Rhondda rumble soon deters scroats.

 

[Des 56]

what's my uncle drac got to do with the thread?

View attachment 41362

Didn't know you are Ray Reardons nephew Tel

 

[telectrix]

not by blood, but he lived 3 miles from me in Stoke when he was at the top of the game.

 

[Des 56]

Great player was Ray in his time,dominated the opposition for quite a few years
Seemed to be a nice type of guy ?

 

[sparksburnout]

Great player was Ray in his time,dominated the opposition for quite a few years
Seemed to be a nice type of guy ?

What's this got to do with getting a bit of Pie and Mash?

 

[PEG]

not by blood, but he lived 3 miles from me in Stoke when he was at the top of the game.

I bet he tells 3 people a week,that story...

 

[the pict]

Wonder if there is a similar proposal for shady council contracts paid via brown envelops at the local asda car park, doesn't happen these days .... yeah right

 

[EalingBadger]

They’d have to ban cash. Simples!

And that is precisely what their end game is - to ban cash altogether.

 

[MDJ]

who says you going to pay a grand into the bank? keep it in house. beer and smokes for the next 3 months.

3 Months? a month uppp North surely.

 

[sparksburnout]

The idea behind all this "cashless society", is so that you have to have all your money in a bank account. Then, all our bank friends will get their heads together and make sure they all start to charge negative interest rates. They have already muted this. As long as they all do it, it won't matter if you threaten to go elsewhere, because, basically, you won't be able to. It's just a money making scheme driven by the banks, and it has to be opposed at every opportunity. It is obviously attractive to the likes of HMRC as then they won't have to try and chase up traders undertaking cash transactions. Fortunately, I can't really see it ever happening in the real world.

 

[Octopus]

And that is precisely what their end game is - to ban cash altogether.

No Government would try this ................ just a few years the bank tried to call "time" on cheques then back tracked.

There's no doubt that the amount of actual "cash" in circulation is reducing .......................... but it will never go away.

I can see a time when HMRC says that everybody has to have a business account and that XX% must pass through said account will be implemented......................

 

[sparksburnout]

No Government would try this ................ just a few years the bank tried to call "time" on cheques then back tracked.

There's no doubt that the amount of actual "cash" in circulation is reducing .......................... but it will never go away.

I can see a time when HMRC says that everybody has to have a business account and that XX% must pass through said account will be implemented......................

I thought they did anyway? Surely anyone working self employed, even on a part time basis, would have a separate business account? It would be a nightmare otherwise??

 

[buzzlightyear]

when they stop paying cash , bitt coins will come handy.
I will set up a off shore account for them .

 

[Dave OCD]

I'll accept payment in motorbikes.

 

[Octopus]

I thought they did anyway? Surely anyone working self employed, even on a part time basis, would have a separate business account? It would be a nightmare otherwise??

I don't think its mandated at all .............. willing to be proved wrong.

 

[Gavin John Hyde]

I can see a time when HMRC says that everybody has to have a business account and that XX% must pass through said account will be implemented......................

HMRC are already suggesting with the digital tax system they are developing and real time info now when you are paid, they now the moment the employer presses send!
they have suggested an app that tradespeople carry and issue invoices through the app, hmrc get a copy, you keep a copy and so does the customer. being digital it will feed into your accounts software and be used in the new open banking stuff coming on stream, you no longer need paperwork and they will know immediately what you have invoiced for. will stop people fiddling books they reckon! its coming its just a case of when!

 

[Octopus]

This is HMRC's latest comment on the situation

Making Tax Digital for Business - GOV.UK - https://www.gov.uk/government/publications/making-tax-digital-changing-the-scope-and-pace-technical-note/making-tax-digital-for-business

 

[Judd]

If cash payments are banned I imagine it being replaced by some other form of undetectable payment. Bitcoin or some other cryptocurrency?

 

[123]

This is HMRC's latest comment on the situation

Making Tax Digital for Business - GOV.UK - https://www.gov.uk/government/publications/making-tax-digital-changing-the-scope-and-pace-technical-note/making-tax-digital-for-business

So for a sole trader, under the VAT threshold, this doesn't apply?

 

[Octopus]

So for a sole trader, under the VAT threshold, this doesn't apply?

Yes, that's how I read it, but only until they've ironed out the issues