Cash payments could become a thing of the past for plumbers, says the APHC

Published:  19 March, 2018

Many professional plumbing and heating companies accept cash payments for work but, under government proposals announced in the Spring Statement, large cash payments could be made illegal in an attempt to reduce tax evasion.

John Thompson, CEO of the Association of Plumbing & Heating Contractors (APHC), said: “In principle, we welcome the announcement, as this measure would not only make trading harder for the small minority of rogue traders that we have in our industry, but it would also target the rogue consumer wishing to dodge VAT.

“However, as with all new policy announcements, we need to understand the detail and whatever the detail turns out to be, the government needs to ensure that a maximum cash transaction limit isn’t set too low or cause excessive red tape. If the government follows the likes of Belgium, France and Spain who have limits of up to £13,000, then I don’t believe this will be over burdensome for the majority of plumbing and heating contractors.

“The other point to consider is that a maximum cash limit could lead to more transactions being made by card, incurring additional costs, which will inevitably be passed back to the consumer.”

It is also thought that the government is going to look at the feasibility of making it compulsory for tradespeople to issue receipts.

“The APHC would welcome the compulsory issuing of receipts, which is good practice and protects both consumer and tradesperson,” John added.