Customers asking to pay cash to avoid VAT.

[benedmonds]

It annoys me the number of customers, wealthy and respectable who ask me to break the law and take cash payments..

Is this to harsh a reply?

 

Unfortunately we have to pay VAT. Intentional evasion of VAT is a criminal offence under section 72(1) of the Value Added Tax Act 1994. It is a serious offence carrying a possible prison sentence of 7 years. Charges can also be brought under the Fraud Act 2006.

[trigger_andy]

3 minutes ago, benedmonds said:

It annoys me the number of customers, wealthy and respectable who ask me to break the law and take cash payments..

Is this to harsh a reply?

 

Unfortunately we have to pay VAT. Intentional evasion of VAT is a criminal offence under section 72(1) of the Value Added Tax Act 1994. It is a serious offence carrying a possible prison sentence of 7 years. Charges can also be brought under the Fraud Act 2006.

Is it illegal to take cash as payment? Surely if you make it clear you are including the vat when paid in reddies whats the big deal? 

 

Or are they explicitly asking for a cash price on the job? Dont ask you dont get as far as Im concerned. Cash is king after all.  

[donnk]

cash is legal tender you know!

[Steve Bullman]

I think the days of cash being much of a bargaining chip are quickly coming to an end anyway!

 

Personally though I think your reply is too much. I'd keep it simpler and just say your business can't run on cash as you have too many overheads that have to go through the books.

[treevolution]

I might try that one next time as I already don't what the job when they start asking to lose the VAT. 

 

 

[eggsarascal]

I'd take the cash but I understand why some companies won't, after all you never know who you are dealing with... If I was a tax inspector I'd try it on witn every tradesman who darkened my doorstep.

[Mick Dempsey]

Just tell them fine, but there still the VAT on it as it all goes in the bank.

 

I would find your reply irritating. You are practically telling them you’ll dob them in and they’ll go to jail.

 

Edited April 21, 2021 by Mick Dempsey

[peds]

I was catering backstage at Glastonbury a few years ago. First night the festival opened on the Wednesday (we'd already been there a week), the boss took us out for drinks at the big red cider bus, and bought the first round.

"Any discount for cash?" she asked, holding two fifties out towards the youth on the bar, a crowd of a line five heads deep behind her. He shook his head as he sighed "Sorry, no."

 

Mate... it's like, a sixty quid round, and you're at a music festival.

[Pete Mctree]

A large number of accounts charge to deposit cash now. Tell them the price will still include VAT and a % sur charge for depositing it in the bank

[benedmonds]

56 minutes ago, Steve Bullman said:

 

Personally though I think your reply is too much. I'd keep it simpler and just say your business can't run on cash as you have too many overheads that have to go through the books.

I probably agree, I have always been more subtle.. But they are asking meto break the law and it would be me in the can not them.. just annoying..