In the Arms - cash jobs

[rocketmanbkk]

Right, I want to square this one away.

Someone pays you cash for a job.

On the next job you need some material.

Do you pay cash for the materials or pay chq/debit/credit card or cash withdrawn from the business account BUT not cash paid that isn't declared?

I asked a mate who has a garage and he says if I spend the cash on materials or other bits for the business I'm gifting the business with things.

He says put cash in pocket & use the business account to buy materials- not all jobs are cash so it works itself out. He basically takes his salary & pays for parts& other business like things but never spends cash in hand on business items.

I take it as we're in the arms we can discuss? If not please delete it forever!

Rct

 

[Dotty]

Don't think it matters if it's all going through the books.

 

[rocketmanbkk]

Mmmmm... But if you only spend money for the business from the business you'll have more 'personal' cash at the end of things?

Not sure about this. I used to spend cash on materials but now don't.

Mmmmm.....

 

[brum]

:rolleyes2:Surely it will be going through the business it would be totally illegal to put it straight in pocket without declaring it and I don't expect for one minute any of us on here would do that..brum

 

[Dotty]

Money's money. It's the conveyancing and perceived convenience that's the difference.

To be honest I'd say you'd be better paying cash as you wouldn't be paying bank charges for that transaction.

 

[rocketmanbkk]

Yes, not that I take cash as said but it's just for arguments sake.

 

[PlumbBobBob]

i get paid in cash, by cheque and bank transfer. obviously the cheques get paid in, cash gets paid in or goes on materials or towards housekeeping. always gets declared anyway.

 

[SimonG]

Cash is a pain if its over a couple of hundred. Its more expensive to pay into the bank, unless you pay it into personal account and transfer online , so i pay bills with it etc.

 

[Masood]

If you're declaring the cash jobs then makes no difference whether you pay it into the bank then use debit card or cheque to pay for materials, or whether you use that cash to buy materials, as long as there are records of the money in and out of the business.

If you're not declaring cash jobs then buying materials with that cash complicates things as you are spending money that you have no record of earning. You may find that hard to explain if you're ever audited.

 

[Destroyer2813]

Put it in a envelop in the draw then pay your account of at the end of the month with it

 

[IDCHAPPY]

Cash gets spent on whatever keeps me afloat, taxman gets his pound of flesh in my other ways....

 

[rocketmanbkk]

Thx all

 

[jtsplumbing]

What's Cash ?? :whatchutalkingabout

 

[bright spark]

If you can put materials through d books do so. It better I your pocket. If your a small outfit, no insult intended. Ye hav to b a bit careful. Yeh can't have 30 boilers bought through supplier on account if you've only put in 15 on the books if ye know what I mean.
Its things like that ye have to watch for. Things like pipe, fittings, insulation, pumps, etc you can put through. No taxman can go out to all your jobs and measure exactly what you've used.
It's common sense to a degree. Do get too greedy and you'll b ok.

 

[villa_tom]

I get paid by bank transfer every Monday by BG.

I dont do any private work, the only time I do work outside of my BG contracting is helping mates on installs.

The cash I get from that gets spent on vodka

As far as the tax man knows I never helped my mate out