Our new research has revealed that almost half (46%) of UK adults admit to having paid a tradesman cash in hand for work, in order to get a cheaper deal. This new data comes following the recent Taylor Review, by Matthew Taylor, in which a reduction of cash in hand payments in the UK was suggested. Mr Taylor stated that work paid for using cash could be worth up to £6bn a year, and quite often goes untaxed.
While a complete ban on cash payments was not put forward, the review did suggest that a cashless society, largely due to the increasing popularity of digital payment platforms, could one day be the norm. The statistics show that adults aged 55 and over are more likely to pay a tradesman cash in hand (56%), compared to young adults (18 to 34-year-olds), of which just 33% admitted they had paid using cash to get a cheaper deal. While this suggests that the older generation may be more thrifty when it comes to hiring a tradesman, it could also be a reflection of the changing times, with cash payments becoming far less frequent in today’s economy.
Plentific allows homeowners to find and pay tradesmen securely online. Paying in cash is costing the government an enormous amount of money and people are putting themselves at risk unnecessarily.
Based on location, Liverpool came top of the table for the number of adults who say they have paid a tradesman cash in hand for work (54%). According to the data, a quarter of Londoners (25%) said they have paid a tradesmen in cash in the past year. This compares to 22% of adults in Plymouth and Southampton, and 21% of adults in Cardiff.
Cash in hand may be the preferred method of payment for some professions, however, for tradesmen it seems many are feeling the pressure on their businesses to compete with those willing to take a lower fee in cash payments. Being paid for work using a payment platform helps to ensure a level playing field in terms of job competition, as well as often providing a lot more security than cash in hand payments. Having a backed guarantee and digital paper trail means that any dispute over payments can be backed up with hard evidence.
In today’s society, it’s so much easier to deal with online payments or bank transfers which are protected, so for me that’s the far better option.
Julio Heitor is an engineer working for Trio Properties, and uses Plentific to find work and get paid online. He said: “Being paid cash in hand is a hassle. I like being able to use a safe and secure payment method that takes the worry out of the job. It leaves me time to focus on the important things such as the job at hand.”
Julio isn’t the only one in the trade industry to have these views. Metin Savas from renovation firm Metin and Co., commented: "When I quote a customer for a job, I do sometimes get asked if there would be a discount for paying in cash. But in today’s society, it’s so much easier to deal with online payments or bank transfers which are protected, so for me that’s the far better option."
Fiona enjoys spending time browsing Ikea show rooms for design and layout inspiration, as well as clever space saving hacks. She has a real love for beautiful home decor!