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Do you pay cash for the materials or pay chq/debit/credit card or cash withdrawn from the business account BUT not cash paid that isn't declared?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

 

[stevetheplumber]

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

they do now

 

[bright spark]

Ah Steve yer right too. Keep all that under your hat. I only do commercial and get paid cheque or electronic transfer, no temptation.
1 of my friends in Ireland knew a guy doing attic conversions during the boom. Had 3 crews going flat out doing 3 jobs every 2 weeks. 1 going through books, half the 2nd in books and cash and all d last for cash.
taking maybe 30k cash every 2 weeks for a few years. Made a fortune till revenue turned up. He left country, never came back.

 

[brum]

What's Cash ?? :whatchutalkingabout

a boy named sue..brum

 

[clarky101]

If people are paying cash, buy the materials with it, if it's cheque or bank transfer put it through the business, I try to find out how they are paying before hand but I have got a local merchant that'll let me book mats out on a cash ticket and hold it until I no how the customer is paying.....works well for me...

 

[plumben]

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

You mean you help your mates out for free and they "gift" you some cash

 

[LPC]

In a totally hypothetical situation that has no bearing or relation to me at all in any way:

You would buy all materials through your business account. Everything.

Any 'cash' you happen to find would be spent on things completely unrelated to your business and are generally consumable and non-traceable: food/clothes/small luxuries etc etc.

Obv you have to be pretty busy and putting lots of invoices through etc. You can't be buying 10k materials in a period and only turning over 3k in same period......

 

[villa_tom]

You mean you help your mates out for free and they "gift" you some cash

Thats what I meant to say

 

[rocketmanbkk]

In a totally hypothetical situation that has no bearing or relation to me at all in any way:

You would buy all materials through your business account. Everything.

Any 'cash' you happen to find would be spent on things completely unrelated to your business and are generally consumable and non-traceable: food/clothes/small luxuries etc etc.

Obv you have to be pretty busy and putting lots of invoices through etc. You can't be buying 10k materials in a period and only turning over 3k in same period......

I agree with that. It's what I've been told to do if I ever took cash which would be nice.

 

[hammers4spanner]

If i get paid cash for a job then i separate cash for materials and labour cash after each job .

End of day cash labour goes into its own envelope and material cash goes into another envelope.

end of week all labour cash gets separated by tax cash ,labour after tax cash gets cashed into the bank passing over the cash , tax cash then gets cashed into another cash account so can pay cash to tax man so he gets his cash .

Material cash then awaits for invoice so can do cash payment then goto suppliers to pay cash for invoice , they count cash , i concur correct amount of cash, they cash the cash then repeat my cash cycle .

so its all about the cash

 

[IDCHAPPY]

If i get paid cash for a job then i separate cash for materials and labour cash after each job .

End of day cash labour goes into its own envelope and material cash goes into another envelope.

end of week all labour cash gets separated by tax cash ,labour after tax cash gets cashed into the bank passing over the cash , tax cash then gets cashed into another cash account so can pay cash to tax man so he gets his cash .

Material cash then awaits for invoice so can do cash payment then goto suppliers to pay cash for invoice , they count cash , i concur correct amount of cash, they cash the cash then repeat my cash cycle .

so its all about the cash

I lost you at the second line mate :lol: