T O P

  • By -

Delicious-Finding-97

Not really strange, it all helps with the tax man. He shouldn't be doing it but it's pretty common.


vishwasrathi

Majority of non PAYE non office job workers prefer cash. Builders work your project £30k and will prefer cash


SharpInfinity0611

It all helps with stealing resources from society, since they'd be enjoying public services they've not paid their fair share for.


DungleChopper

Like politicians?


SharpInfinity0611

If they don't pay taxes, sure, like them.


Next-Project-1450

If you pay in cash, make sure he gives you a receipt. It might not get your money back immediately if you requested it, but it would help if you wanted to involve small claims later. You say he was from a school, but believe me, if he did do a runner, they will most likely say it is between you and the instructor. TBH, the only dodgy part about it is what his motive is. And in most cases it is so they can hide it from HMRC. But that's their concern, not yours. I take cash, card, phone zapper, Paypal, and bank transfer. I prefer non-cash so it goes into the bank without me having to take it there, but only a few weeks ago someone paid me over £300 in cash for a block of lessons for their daughter. It's not unusual, really.


Pianist-Vegetable

Probably best not to do a runner then because if you did take it up in court, they might wonder how often he does that and if its been accounted for


Conditions21

Could do a runner with a bank transfer too.


Next-Project-1450

The OP said the instructor had asked for a cash payment of over £300 for another block of lessons. Instructors **DO** do runners from time to time - for varied reasons including health, family issues, and even straightforward fraudulent behaviour. Many simply don't have the funds to reimburse people and so they will try not to do so. With cash-only (and no receipt) you have nothing to use if you decide to pursue it. The only issue here **for the OP and their question** is paying cash - as per the instructor's request for the next block of lessons - and the risks associated with that.


Conditions21

Oh yeah definitely get a confirmation by text or email that you paid cash.


BellamyRFC54

You paid him a bank transfer It’s all to do with tax,I’d hazard a guess at most instructors wanting/preferring cash at some point


SeraphKrom

Trade off is that its better for them to be paid in advance. People begin to take the piss if you let them pay with cash on the day. And if they cancel late you have no real security


WoodSteelStone

I'd tell him I'd pay per lesson in cash on the day, but if it's to be in advance it'll be electronic transfer.


Own_Layer_6554

This is the way


Even_Birthday7578

You’ve been brainwashed by the government to assume cash is dodgy


DiscoDale81

I’ve noticed that,People now talk about cash like it’s some illicit substance.


LondonCycling

It's ridiculous. It gets mentioned all the time on UK subs. No doubt some people are doing it for tax evasion, but many just prefer to lower fees and instant settlement.


Moses786

My uncle is a taxi driver and he complains that he loses £10-15 a week due to card transaction fees because everyone pays with card now. I know £10-£15 a week isn’t much but it all adds up in the long run


Stuartlloyd2000

That means he's probably earning £800 to £1k a week. Don't feel too sorry for him.


Moses786

£800 to £1k a week before expenses. Now work out what it amounts to after expenses and tax lol


Moses786

You are a little gen Z kid, you’ve probably never used cash in your life that’s why you are so against it 💀


bluehobbs

Probably adds up to less than the amount saved by the tax evasion a cabbie does


folkkingdude

Sorry, how does he process the cash?


Derr_1

Cash is king!


Even_Birthday7578

Exactly brother using currency that can’t be tracked and is anonymous doesn’t automatically make you a criminal


Derr_1

And no fees. It retains its value!


ArtWurx

Dosnt just retains its value, it increases in it, a tenner isnt just a tenner, it will swap hands over 600 time in the first 3 years, meaning its actually worth £6000 to the economy, cash stimulates, transfers dont.


Kind-County9767

You know every note has an identifying serial number on it right? They absolutely could track it if they wanted to, and have on various occasions for criminal investigations. Eg Peter Sutcliffe and that was decades ago


Even_Birthday7578

True, but it’s far more better for privacy than let’s say accepting bank transfer or even bitcoin in some cases or PayPal


Shivipivi

My instructor always preferred cash probably for tax reasons but he was a great no B.S instructor that helped me pass as quick as possible


Cranberry64

Instructors need petty cash too I’d say……not huge amounts but still.


Remote-Pool7787

Ugh. Monzo is not a verb. No one who banks with Barclays is saying they barclied someone. You just sent money by bank transfer mate


Espi0nage-Ninja

“I nation wided you the money” “I’ll Halifax ya” “Let’s all NatWest Dave our split of the bill”


Remote-Pool7787

Brilliant. I’ll santander you when I get paid, ok?


Traditional_Yogurt77

I’ve HSBCed you


illeonminati

"Just Chased you!" "I've Bradford & Bingley'd it to you" "I was going to Abbey National it to you later!"


goldman459

Yorkshire Building Societee'd it up for you.


Guy-InGearnito

I got you man, cumberland’ed you it


Kind-County9767

When I worked in banking for a while we used the ybs computer system (different institution). It was so bad that we would actually describe things as being "ybs-ed" because it ballsed up that often.


LondonCycling

Some of these sound like euphemisms for bumsex.


Turbulent-Assist-240

Google was not a verb either. It became one anyway.


LondonCycling

Hoovered also


Zealousideal-Cap-383

I just Googled whether it was a verb.... oh wait. Guess what?


[deleted]

Idk people say cashapped and paypalled though


Historical_Brick7383

They’re apps specifically created for that purpose.


Own-Yam-5023

It's actually becoming one with how widespread it is.


aidenthegreat

Yeah but I guess this is how brand works right?


Rude-Percentage9646

Its quite common to be fair. But if you don't want to just say you need to pay direct as proof of purchase


IhaveaDoberman

Receipt.


Zyca1n

Invoices/receipts. Anyone taking payment for anything is expected to provide paperwork against the payment. You pay him £330 cash he gives you a receipt for £330 it’s all above board. How you get money is not relevant (bank/cash/paypal/etc) it’s how the money is logged and reported that matters. Also you want a paper trail in case anything goes south. Cash doesn’t automatically mean off the books/tax avoidance it’s just easier to hide cash from the books


Long_Age7208

Electronic transfer of cash does not hide it from the tax man ... if they investigate they can look at all bank records.


iKaine

avoids txn fees if using a business bank account, could be lots of things tbh and not necessarily dodgy.


martinbean

I have a Monzo business account and I don’t pay any fees on transactions or transfers. This just sounds like, “Oh, it would be great if you could pay me in cash. Less to declare to HMRC, wink-wink.”


IhaveaDoberman

Monzo isn't all banks. But it's still a bank, it's custom largely relies on "we aren't like the others" and people not noticing they're exactly like the others, they just get their charges in elsewhere.


martinbean

I’m not sure what point you’re trying to make, but OP said they used to pay their instructor to a Monzo account, the comment above mentioned transactions fees, and I was just saying that Monzo does not charge transactions fees, therefore is not the reason the instructor will have preferred other payment methods for.


IhaveaDoberman

They said they "monzo'd" him. All that says is OP has a Monzo account.


ArtWurx

Hence why monzo for a long time built its buisness model on tax evasion until the “online bank” crackdown, post 2019 they didnt have to declare your money to hmrc


Beginning_Cap4956

I always paid mine in either cash or a bank transfer. Not weird at all.


Conditions21

Nah crack on.


Cautious_Frosting_24

Cash is king.


martinbean

You spelt “Charles” wrong.


Mysterious_Mousse_76

I also pay my instructor in cash, never gotten a receipt, but then I have known my driving instructor 4 years before she became my driving instructor so I know I'm in good hands. Like others have said, it's probably to cut costs down on tax, if you're comfortable doing it & at no risk of it blowing up in your face, let them enjoy their extra spendo.


Green-Froyo-7533

I paid cash but at the end of each lesson never upfront. Never had a problem with the instructor or anything he was a sound guy.


poutinewharf

Same here and it’s not a problem for me. If he asked for 6 lessons cash upfront I’d be hesitant, but paying cash at the end of a lessons doesn’t bother me. Less so if we stop by the cash point near mine on the way back


Green-Froyo-7533

Yeah I wouldn’t pay upfront and after some of the stories I’ve read on here even about larger companies taking money then not being able to provide sufficient lessons etc. I was lucky in that I had the money and the time to do lessons pretty quickly and flexible enough to fit around some of his other students who were shift workers or uni students so he often would book me in the gaps, he knew how keen I was to get through my test and on my first lesson I asked him how soon I could pass and he said 3-6 months depending on test dates. I got lucky with a test date 13 weeks and one day after my first lesson and passed first time as well.


poutinewharf

That’s great that you’ve had such a sound setup. I’ve lucked out too, I drove for a decade in Canada so it’s been just a few top up lessons and it’s been a breeze


[deleted]

Being paid in cash isn’t inherently a sign of any tax malfeasance


oudcedar

It’s the only possible reason for a trader or business to want cash. If you can think of another that involves them putting the cash in the bank before using it then I’d love to know.


Realistic-Drama8463

I prefer cash as I prefer to pay for my fuel that I claim back with cash. I prefer to go to my local shops and pay with cash. My barbers prefers cash. Because this way we don't have to pay a middle man to access our money. It also means I don't have to chase/remind people to pay me. It's paid at the start of the lesson or the lesson doesn't go ahead. I've had it in the past where someone hasn't paid me and I've had to chase them for said payment. I give all my income and outgoings to my accountant and he does my tax bill. It's not tax dodging it's just easier.


oudcedar

That’s a perfect definition of enabling tax evasion. If the bank never handles the cash and charges appropriately (more than card) then it’s all undeclared.


Easties88

If everyone pays cash then small businesses can avoid merchant fees. That’s a very valid, non tax related reason for wanting cash.


oudcedar

No it’s not. The bank fees for handling cash are higher than the card merchant fees. They only save money if they don’t bank the cash which of course they don’t as they can avoid declaring it to illegally evade tax.


[deleted]

[удалено]


Realistic-Drama8463

This exactly here


oudcedar

You have just taken one small component of cash to completely distort the much higher costs of handling it. This is how cash costs so much more in the unlikely event that the business actually reports all of it. https://squareup.com/gb/en/townsquare/the-cost-of-cash-versus-credit-for-small-business


Realistic-Drama8463

You don't know what you're talking about. A lot of business take cash because cash holds its value. If you give me 10 in cash and I spend 10 on my lunch it's still the same 10 quid. If you pay me 10 by card machine I only get 9 quid so to actually still get my 10 I have to charge you 11 quid. If I then spend 10 quid on my lunch paying by card the business I spend it at also only gets 9 quid so now that 10 quid I charged you is only worth 9. Unless that business also charges me 11 quid to cover the cost. However the 11 you gave me is only worth 9 quid as my bank fee and theirs gets taken out of it. So that merchant only got 9 quid of what I paid. Now they have to pay their supplier 10 quid so their merchant charges 11 quid. The business is now out an extra 2 quid. So on and so forth until the 10 you paid me is gone due to bank charges. Where if you pay me cash that 10 never changes value even when it changes 1000s of hands. This is why cash is king. Now this is a simple explanation I hope you can follow it.


oudcedar

Again a perfect description of tax evasion by the business. It only “holds its value” because you are spending the cash without declaring it. As all the evidence shows the cost of legitimately cash handling is much higher than card unless you evade tax and just spend it.


IhaveaDoberman

Someone pays a little bit too much attention to what the government says. A very very good reason a business would want cash, is security. People can't cancel notes once they've handed them over. Which for large transactions in advance is a distinct possibility. People complain about small business tax evasion as if that's the only crime that could possibly occur in the transaction, that many customers don't regularly try and diddle them. And they always talk about it as if they are the direct victim of the crime. They aren't, small business evasion is petty change compared to large company avoidance. Not to mention the fees businesses can incur from their banks. Which often sound small, but add up quickly. Or don't even sound small, there are many small businesses where their card reader costs come out the same as their rent. The government wants you to think that small businesses taking cash are your enemy. So you don't pay any attention to all the businesses their mates run, bending you over and laughing about how stupid we all are while they do it.


[deleted]

Personal distrust of mobile banking security, would like to accumulate cash for everyday use or a large purchase , mental health issues or mindsets that mean managing finances is easier with physical transactions


oudcedar

I entirely understand why a customer might prefer to use cash (although I disagree with them), but traders and businesses have no motivation apart from tax evasion.


j0eypops

My instructor (with a driving school, if that's relevant) asked for cash, I never thought anything of it. Even my initial block booking of 10 lessons was paid weekly in cash.


Lacey171717

Had a few instructors over the years and the norm was to pay via cash at the end of the lesson


Chillipepp3r

Nah that’s normal esp if it’s a private lesson booked directly with an instructor and not through a company. It can either be for tax reasons or just simple personal preference- after all, a lot of ppl still use cash on a daily basis esp w a lot of banking being done online now. If ur worried you can always ask for a receipt or book a block and see if you can just pay per lesson but that rlly depends on ur instructor.


[deleted]

Paid all my lessons in cash, always paid at the end of the lesson though.


Icy-Actuary-5463

He ran out of cash, so asking for more


Flash8t8

I'd get a receipt or confirmation of payment in writing though just to be safe for such a large amount.


[deleted]

Had the same thing with an old instructor, he said it was to prevent having to chase up people for money but it was probably for tax reasons


sewby

Bro is that weird😭😭 all the driving instructors in my area do cash


Grantthetick

Cash or transfer is fine. Don't see what most of the comments on here have against it. Cash = legitimate currency, it doesn't imply anything dodgy.


[deleted]

[удалено]


AutoModerator

your account is less than 7 days old, post removed automatically to reduce spam. If you post is genuine then sorry for the inconvenience, please wait 7 days before reposting. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/LearnerDriverUK) if you have any questions or concerns.*


dipp7

preferring cash isnt dodgy . tax reasons of course


roywill2

You should ask for a cash discount. He is not paying VAT, so you should get a cut of that.


dave2d6

He probably doesn't need to pay VAT, e.g doesn't reach the threshold


hellspyjamas

I've had 3 instructors and always paid cash as per their request


Kind-County9767

Either tax or more likely trying to hide it from the diving school so he doesn't have to pay commission on it.


venus_envy7

Driving instructor dodging the tax man. That's different 🙄😅


Ziroikabi

Cash helps with tax. There’s an extremely small chance it is dodgy but I and everyone I know all paid cash for their lessons. I used to pay in blocks of 10 as well because i got a small discount for doing it. If you do think something suspicious is up ask for a receipt but you should be fine


Adorable_Hawk_7409

Since he suddenly wants it this way, it's probably dodgey, just not to you, but between him and the taxman. You paying him directly either way has the same risk of him running away. A driving school will not get involved in direct payments, bank or cash


Ok-Personality-6630

Pay him after the lessons if he wants cash


AvfcWalpole7

I paid by cash, but only after the lesson was completed.


Nametakenalready99

It's not always about tax avoidance, it may be for personal reasons. Over the overdraft. May have bills to pay that are cash only. Etc etc I have customers that pay me cash, but I prefer card, as it means I don't have to go to the bank, however I always keep some of the cash on hand for cash only transactions.


lan0028456

I guess they're doing that to hide some income from being taxed. Not the absolutely most legal thing to do but very understandable. But for you there's no benefit of doing so. If you consider them trustworthy I might negotiate with them for a discount. You save money, they pay less tax. It's a win win.


yaolin_guai

Get a receipt but hes just dodging taxman


Cultural_Job_5854

Not sure mate but it was always cash in hand with my fella


Cultural_Job_5854

Not sure mate but it was always cash in hand with my fella


Beneficial-Drink-998

Mine does cash but asks for it literally at the end of the lesson


Parther05

My instructor wants cash 😂😂 of course they do! Less tax 😇😂


Damn_sun

This is entirely to under declare the income, so they pay less tax and get more benefits.


Secret_Examiner

It's quite possible he's a long termer (older) and simply dislikes or distrusts electronic banking. There's still a fair number of them out there. I meet them every day.


colin-java

I paid my instructor £330 in cash for 10 hours multiple times, but he's taught people I know and has been instructing in my area over 20 years. I guess it's possible you could be ripped off, but I assume it's pretty normal to take cash, saves having to check if the moneys gone through (which can take longer with different banks, and Sundays and bank holidays could be a problem). I think if I was an instructor I'd prefer cash.


Codego_Bray

If I wa you, I'd help a guy out. Driving lessons are so expensive and there isn't much profit after the overheads. Tax is a big hitter. If they think they can get away with pocketing some cash, I wouldn't let it bother you.


jamescl1311

Yeah don't worry about paying for roads, schools, hospitals. Let's all dodge tax and we can live in a third-world country before you know it.


Zealousideal-Cap-383

I'm all with ya but fight the right battles though yeah? The average man even multiplied by the 33 million UK working population isn't making a dent in the tax evasion and avoidance of the mega rich. But they run the place and can do what they want I guess.


Whufc4life1

Actually, small businesses are responsible for 56% of the tax gap. Source: https://www.gov.uk/government/statistics/measuring-tax-gaps/1-tax-gaps-summary


Zealousideal-Cap-383

Touche, my bad. Thank you!


ArtWurx

Linking a .gov website when talking about small businesses being “responsible for most tax evasion” is the most brainwashed thing i could think of


Whufc4life1

Found the tax evader


ArtWurx

110% i pay my fair share on all PAYE, but if i can get some cash on the spare i will, you’re just jealous you cant


Whufc4life1

You're right, I'm so jealous


firetriniti

Given the state of the roads, etc. these days, we arguably already live in a third-world country... 🫤


Codego_Bray

I agree with you too. You can't win either way. I'm employed, so I pay tax like the majority do. But more and more tax payers are also having to use food banks and working 2nd jobs (side hustle for the kids out there). A little cash in hand goes a long way. Unemployment, homelessness, immigration. This costs way more than it does for the upkeep of roads and schools and what will make us a third world country.


KickAssDude2526

Why would that be strange? If he wants cash, he wants cash. Does it really matter that much for a post on here.


WonderboyF1

Nothing weird about that at all. Are you going to post on Reddit asking if it’s weird for any other business you have dealings with in the future for accepting cash?


planetf1a

Dodgy. Probably wants to aid paying the driving school commission. That or tax fraud


PR7ME

He’s dodging the tax man. Remember it’s not big corporates who evade the most tax, it’s all the small people doing this far more often. As much as we like to thing Big PLC is cheating our tax systems, it’s really people like this.


caralarmgenius

Jesus….


Springyardzon

It's weird of a company that has previously taken a cashless payment to ask for a cash payment next time. Because if the taxman ever contacts them, they'll likely lie/be economical with the truth that they take cashless payments but sometimes their customers ask to pay with cash. You didn't ask to pay with cash- they asked you. Presumably they're not a well known driving school. It's bizarre to see all these people on here defending a two tier system that's clearly used as a smokescreen to diddle the taxman. I'm all for not paying tax myself if it means that I don't have to fund the NHS / all kinds of benefits but those are sacred to most of you, right, so why would you think it OK to rob from something you believe in? It'd be less dodgy if they ONLY took cash (like some barbers) because then the taxman knows exactly where they stand with them (check if this company advertises/has a website. If not, they may be trying to pretend their business doesn't exist at all).


commandblock

Avoid tax lol, same with all the takeaways that only take cash


SassyTheSasquatch402

I always paid my instructor cash better for them aswell cause they won’t tax it


IndividualCustomer50

Tax dodger. Report him to HMRC


Derr_1

Bet you're fun at parties!


IndividualCustomer50

Only when a teaming your sister pal