Paying somebody in cash

[Donnie]

I have a guy out with me on the odd day here and there and he likes to be paid in cash for whatever reason.  
 

How's the best way to go about this for invoicing and creating a paper trail as there really won't be one without bank transfer etc. 

[Steve Bullman]

I assume you have a petty cash on your accounts? Pay from that, assuming he’s happy to give you an invoice?

[Mick Dempsey]

I very much doubt he’s declaring it, so you must tell him YOU are declaring his payments to the tax people.

 

Edited July 9, 2023 by Mick Dempsey

[Peasgood]

You should also have their address and their NI number.

[Gordon S]

It would be usual business practice to pay him once you have received an invoice.

My guess is he probably won't be working for you once he realises it's not a untraceable cash payment.

[Steven P]

Looking at the flip side, some people manage their money only paying with cash - they might be like that and it saves them a hassle of a trip to the bank - see some people paying for their weekly shop for example in cash all the time

 

 

Make sure you cover yourself though, I don't think the excuse "I thought he was paying his tax" would be without questions. I have never employed anyone, but I would make sure you follow the same rules as if you were paying into a bank account, and an invoice sounds like a good start to the paper trail - that way if you get asked any questions you can show what you did.

 

Now I am trying to think apart from budgeting, any other valid reason why you don't want paying through the bank system, I don't think I could go through the week just paying cash. Tax, hiding earnings from a partner / ex partner, hiding a second job from another employer, loads of reason but not many honest' ones

 

 

[Johnsond]

6 hours ago, JDon said:

I have a guy out with me on the odd day here and there and he likes to be paid in cash for whatever reason.  
 

How's the best way to go about this for invoicing and creating a paper trail as there really won't be one without bank transfer etc. 

Absolutely nothing wrong with paying wages in cash at all, as long as it’s with the correct paper trail showing deductions etc and or get him to sign for it. Quite frankly it tends to make people more fiscally responsible when it’s hard cash they are handling on a  day to day basis rather than painlessly swiping a bit of plastic,  as well the banks know. 

[topchippyles]

I get paid cash all the time and pay a couple of subbies in cash for the odd day just tally up the invoices.  

[eggsarascal]

I guess as an employer it’s how far are you willing to play the game. Most, not all, small business get paid in cash for some jobs, do they declare that cash? If you are one of those you can spread the cash and say nothing, if all your work/contacts are paid through bank accounts it’s a different story.

[Johnsond]

1 hour ago, eggsarascal said:

I guess as an employer it’s how far are you willing to play the game. Most, not all, small business get paid in cash for some jobs, do they declare that cash? If you are one of those you can spread the cash and say nothing, if all your work/contacts are paid through bank accounts it’s a different story.

In the current financial climate any income that is not raped by the system is more than welcome in my book. I’d say the amount of people taking cash is still very very high. In particular with loads of timber where  cash really does talk.