Proposal to ban cash payments?

[Gavin John Hyde]

On radio last night they were discussing the idea that the tax man might ban cash payments for tradesmen/women.
The idea is that for jobs over a certain amount you would have to take card/cheque or bacs transfer. It will also stop cash in hand for a lower fee
They are supposedly going to be doing this in some continental countries and the UK are considering it.
Personally, I now use a card reader (£30 cost )and take chip and pin, it saves going to the bank and links in well with quickbooks. I pay a o.75% transaction fee.
What do people think about possibly going to cashless system? If you are not fiddling the books i guess you got no complaints but if you do the odd job on the side it could impact you.
Cash-in-hand payments could be banned in the Spring Statement | Daily Mail Online - http://www.dailymail.co.uk/news/article-5497783/Cash-hand-payments-banned-Spring-Statement.html

 

[Gavin John Hyde]

I can see a time when HMRC says that everybody has to have a business account and that XX% must pass through said account will be implemented......................

HMRC are already suggesting with the digital tax system they are developing and real time info now when you are paid, they now the moment the employer presses send!
they have suggested an app that tradespeople carry and issue invoices through the app, hmrc get a copy, you keep a copy and so does the customer. being digital it will feed into your accounts software and be used in the new open banking stuff coming on stream, you no longer need paperwork and they will know immediately what you have invoiced for. will stop people fiddling books they reckon! its coming its just a case of when!

 

[Octopus]

This is HMRC's latest comment on the situation

Making Tax Digital for Business - GOV.UK - https://www.gov.uk/government/publications/making-tax-digital-changing-the-scope-and-pace-technical-note/making-tax-digital-for-business

 

[Judd]

If cash payments are banned I imagine it being replaced by some other form of undetectable payment. Bitcoin or some other cryptocurrency?

 

[123]

This is HMRC's latest comment on the situation

Making Tax Digital for Business - GOV.UK - https://www.gov.uk/government/publications/making-tax-digital-changing-the-scope-and-pace-technical-note/making-tax-digital-for-business

So for a sole trader, under the VAT threshold, this doesn't apply?

 

[Octopus]

So for a sole trader, under the VAT threshold, this doesn't apply?

Yes, that's how I read it, but only until they've ironed out the issues

 

[EalingBadger]

If cash payments are banned I imagine it being replaced by some other form of undetectable payment. Bitcoin or some other cryptocurrency?

Bitcoin is not undetectable / untraceable.

 

[Judd]

Bitcoin is not undetectable / untraceable.

Other cryptocurrencies are though.

 

[EalingBadger]

Other cryptocurrencies are though.

And they are different from bitcoin in this respect because...?

 

[Judd]

And they are different from bitcoin in this respect because...?

XVG, XMR and PIVX to name a few can all be used anonymously.

 

[telectrix]

confused.