Paying cash for tradies

[Starofdavid]

No always try to pay in cash, but use your negotiation skills, ask how much first then ask for a discount then say " oh how much if I just pay in cash ?

So if originally he said $400 plus 40 get , you say can I get a discount on that ?
He says yes and gives you 10 off or whatever and says 430 then u say how much cash, he says $400 , then u say $350

 

[lazibones]

No always try to pay in cash, but use your negotiation skills, ask how much first then ask for a discount then say " oh how much if I just pay in cash ?

So if originally he said $400 plus 40 get , you say can I get a discount on that ?
He says yes and gives you 10 off or whatever and says 430 then u say how much cash, he says $400 , then u say $350

Bugger that, I would want to offer the less than $300, I would want a discount of more than the tax deduction I could claim. if I had cash which I don't use, I think it is stupid, I would put it in the bank and increase my servibility $400 may mean I can borrow another $3,000 which could be used to invest in shares which can futher increase servibility and CG.

 

[BayView]

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!

Warranty as well.

If there is any dispute down the track, it is very hard to go after a tradie if there is no record of any work being done.

 

[Morbius]

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

Indeed. Unless your tradie has an eftpos machine in their truck, cash in hand is pretty-much their only option not to have the cost of the job go into their "receivables" and hence pump up their working capital requirement. There are very good non-tax reasons why a tradie might prefer cash in hand to some other form of payment.