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Customers wanting to pay cash.

Discussion in 'Trade Talk' started by tilerman, 23 Sep 2019.

  1. tilerman

    tilerman

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    My jobs come in at around the £750-£2000 range. Not big money. Increasingly im getting customers offering cash for a discount. I am genuineley not interested becasue if i did accept every offer little would go through my accounts. And not only that my prices are very keen so i just cannot go lower. My dilema is i need the work so how would you/i politeley decline the offer but not lose the job? I know people are just trying it on but i do get people that go elsewhere once i refuse to budge.
     
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  3. ajstoneservices

    ajstoneservices

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    Tell them you would have to charge more because the bank charges (mine £8.40p per thousand) to pay cash in. Plus you have the hassle of going into the bank when you are supposed to be working.
     
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  4. Iamchamps

    Iamchamps

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    You must be one of the few. I struggle to find trades people who will let me pay them via bank transfer/card. Most ask for cash.
     
  5. jonbey

    jonbey

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    Yep, say you take cash, but cannot lower the price and need to charge the bank fee.
    They might have the cash sitting in a box already and need to speed it!
     
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  6. tilerman

    tilerman

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  7. tilerman

    tilerman

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    Thanks for your replies. I do have some regular clients that pay cash as they have business's. (Cash goes through my accounts) What does suprise me that 2 of them have a LOT of cash lying around. Im not talking pocket money here, large amounts. I just cannot work out where they get it from. Nice houses, nice cars holidays etc. You can't pay for that stuff with cash. I actually do get paranoid when new customers offer cash, its like a red flag to me and i never say yes.
     
  8. jonbey

    jonbey

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    Years ago my dad was an accountant for a car dealer. The dealer had a suitcase of £50 notes and asked my dad for advice on getting rid of it. Mad. Over 100k sitting there. And the notes were all soon to go out of date. Better off paying tax!
     
  9. tilerman

    tilerman

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    100k in cash. Wow. I have 2 mates that are in the trades. Neither of them paid any tax or NI for years and years. One of them over 30 years. Totally off grid the both of them. Been laughing at us 'mugs' for years. Sad thing is, its catching up with both of them. Both coming up to retirement age, no savings, no pensions and worst of all, no where to live. No paper trail. How that works i don't know. And neither of them in the best of health, although they are being looked after by the NHS. The irony escapes the pair of them.
     
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  11. Notch7

    Notch7

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    Think about it this way: your customers want to save a bit of money by putting risk onto you.
    If didnt declare everything and got investigated, those customers wouldnt care.....and customers are quite happy to mention cash in emails or texts o_O

    Cash might seem nice, but it makes it difficult to have an organised business.
    If everything is paid by bank transfer, its easy to trace through your accounts, job has an invoice and every job can have a specification and price all agreed in writing recorded in an email.

    Cash just opens up opportunties for disagreements and disorganisation.

    Good tilers around my area of Sussex Surrey seem to be in huge demand -and can earn top money if they are quick, certainly no need to take any cash.
     
  12. wgt52

    wgt52

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    Gosh, where to start.
    How do you fund the materials? Through your books? - then you need to account for that, or Cash? - then you might get away with it. Of course you may loose the trade discount.
    How do cost/fund/show you expenses?
    Do the people offering cash want receipts - then of course you are unable to discount.
    When do they offer cash - start or end of Job?
    How do you record your time? I certainly kept/keep a work dairy, if only to show where and what I've been doing and how many days on each job. The accountant likes to see it as well (they had a trader who was caught out taking 'too many' cash only jobs) if only for all parties protection.

    Don't forget it could be a trap, especially if you don't know the people you are doing the job for.

    I'd never refuse cash but then I'd not give a discount to a new customer and it would always go through my books. Old customers with lots of repeat work may get a 'rounding down' discount to the nearest £25 or £50 depending on how big the final bill is, but then they know I'd be responsive when they had issues that needed a quick fix (less than half a day inc. travel) - which usually that, I regard, is the discount.
     
  13. JohnD

    JohnD

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    Surely @Motman would deport them.
     
  14. Motman

    Motman

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    Why? I’ve only started paying personal tax myself (on dividends) over the last few years as they’ve lowered the limits before tax is due on them and I haven’t paid NI for many years - (No NI on dividends). That doubles up if your wife is a director too. I pay a fair bit in corporation tax though. (y)
     
  15. JohnD

    JohnD

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    deport motman as well.
     
  16. Motman

    Motman

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    Deport you for your partial quoting crimes! You forgot to quote this bit: "I pay a fair bit in corporation tax though". I pay no more and no less than I am legally required to pay.
     
  17. JohnD

    JohnD

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    Google and amazon say the same.
     
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