Paying cash for tradies

Hi All,

Apologies if this post is in the wrong place.

Paying tradies cash in hand. Is it worth it?

Unless I'm missing something, unless the tradies discount is more than 30%, I'm better off getting the work done "legit" with a receipt for tax purposes.

Sorry, but I'm posting in a rush!

Is there something I'm overlooking, or should be considering further?

Cheers!
 
Is there something I'm overlooking, or should be considering further?

Cheers!

Yes there is something you should consider...
It's called TAX AVOIDANCE!!

it because of this sort of behaviour I have to pay more tax...

Maybe call the ATO and get their advice ?
:confused:
 
More disconcerting is the lack of insurance - subby claiming Mediterranean back or public liability claim due to an act/omission of the contractor.
 
best to get receipts and pay tax.

it will cost more than 30% of the total amount if things needed to be repaired or re worked...
 
No tax invoice, no payment. Simple as that. And once you have given me a valid tax invoice I pay immediately via EFT. No messing around with cheques that bounce. Don't like it, want cash in the hand, don't want your business, nothing personal.
 
Definately invoiced
On top of matters already brought up, I'll add that you will also loose out when it comes to paying CGT
 
People have offered me a cash price before, I've accepted and then at the end asked for an invoice prior to paying.
I'm happy to give them cash, but I still want the invoice, if they want to cook their books, that's up to them.

I'm always tempted to dob people that do this into the ATO.
 
Yes there is something you should consider...
It's called TAX AVOIDANCE!!

it because of this sort of behaviour I have to pay more tax...

Maybe call the ATO and get their advice ?
:confused:

Tax avoidance is something we should all be doing, evasion is what is illegal.
 
Sorry last time i checked paying someone in cash was not illegal at all.

If the contractor provides you with a Tax invoice and then decides not to show your payment as a income when he lodges his Tax return that is not your issue.

Tax avoidance is a criminal offence however paying someone in cash is not.

Cheers
 
Sorry last time i checked paying someone in cash was not illegal at all.

If the contractor provides you with a Tax invoice and then decides not to show your payment as a income when he lodges his Tax return that is not your issue.

Tax avoidance is a criminal offence however paying someone in cash is not.

Cheers

When i ran the business,we had cheques bounce,promises of EFT never fullfilled ,no credit card to finalise bill,pay you tomorrow, so cash was the preferred payment,with a tax invoice issued.Why do most people think if you get paid cash its under the counter stuff,remember Banks accept cash
to put into your account to still pay bills etc.Whole hardetly agree with Qlds007
 
Why do most people think if you get paid cash its under the counter stuff,remember Banks accept cash
to put into your account to still pay bills etc.Whole hardetly agree with Qlds007

For me, it is the terminology used when someone either asks a tradie "how much for a cash job" or if the tradie gives the home owner a price and then adds "or I can take off $100 for cash".

To me, both scenarios indicate (without actually saying so) that this will be a cash job, ie. "I can do it cheaper because I won't be declaring it and won't be issuing a receipt". This is hardly a scenario that anybody wouldn't understand pretty well.

I don't think any reasonable person believes paying in cash automatically indicates the tradie will not be declaring the income, but usually (lets be real here...) when these words are uttered, it is "understood" by both parties.

We've paid tradies in cash, and got receipts, but we know our tradies well so we don't have to wade through the "do they get what I'm asking?" thing.

Whether they declare the income is up to them, but issuing us a receipt is all we need to know we've done the right thing.
 
Is there something I'm overlooking, or should be considering further?

When you purchase an IP do you pay cash for the land, buildings, fittings/fixtures or do you borrow the funds?

I hazard a guess in that you borrow the funds for the purchase.

Why would you use cash for building maintenance / replacement fittings & fixtures?

By paying cash, you've just taken a 100% of the work cost hit to your cash flow.

Always work towards maximising your cash flow and use OPM instead - it's cheaper.

Food for thought.
 
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