‘My builder is forcing me to pay thousands in cash. Could I get in trouble?'

Telegraph

10-05-2025

If you have a conundrum that you want answered in a future column, email: [e-mail]. All our letters are genuine, but writers are anonymous.
Dear Moral Money,
I'm having a considerable amount of building work done on my house, which is going to cost several thousands of pounds, and my builder has requested to be paid wholly in cash. I'm guessing this is because he doesn't want to declare his earnings, and therefore get away without paying tax on it.
While I'm not thrilled at the thought of going to my bank to withdraw a wad of banknotes, I've provisionally agreed to do this to secure his work – but I feel uneasy about it.
As the customer, could I get caught for possibly helping someone evade tax? Are there other risks I should think about before handing over the money?
– Anon
Dear reader,
Your discomfort is not only understandable, it's also justified. What you're grappling with is a moral, legal and practical dilemma all wrapped into one – and it's one that thousands of homeowners quietly face every year when engaging tradespeople.
Let's start with the heart of the issue: your instincts are pointing to something that doesn't feel quite right, and they're worth listening to.
While it might seem like just a payment method, a request to be paid entirely in cash – particularly for a large sum – often signals an intent to operate outside the formal system. That usually means the builder is avoiding paying tax, and while that's ultimately his legal responsibility, your cooperation could implicate you more than you might think.
Paying in cash isn't illegal in itself. We still live in a country where cash is legal tender and, in theory, you can use it for any transaction. But it becomes ethically and legally murky when there's a clear intention to conceal income from the tax authority.
If HM Revenue and Customs (HMRC) was ever to investigate your builder and uncover a pattern of large cash payments, it could look into his clients – and that includes you.
You wouldn't necessarily be prosecuted for handing over cash, but you could be asked some uncomfortable questions, and if it were found that you knowingly participated in tax evasion, there could be serious consequences.
More immediately, though, there are practical risks in going along with this. Handing over large sums of cash leaves you with almost no paper trail. If there are problems with the work – delays, quality issues, or disputes over what was agreed – your ability to prove what you paid, and when, will be limited.
A receipt can help, but in practice, builders who insist on cash-only jobs aren't usually keen on issuing formal documentation. And, without a contract or proper invoicing, you're left dangerously exposed if things go wrong.
Then there's the personal safety issue of withdrawing thousands of pounds in cash and transporting it. It's a risk that's entirely avoidable – and in today's digital world, frankly unnecessary.
It's also worth considering the broader impact. When someone doesn't pay their fair share of tax, it's not a victimless act. That lost revenue affects public services – hospitals, schools, roads – and undermines the system that the rest of us contribute to.
If you're uncomfortable enabling that, even indirectly, you're not just being cautious, you're acting in line with a reasonable ethical standard.
So, what should you do? The honest answer is: don't proceed with this arrangement unless the builder agrees to a more transparent method of payment. You could say something like, 'I'm not comfortable paying large sums in cash – I need a record of the transaction and want to make sure we're both protected if anything goes wrong.'
Most reputable builders will understand this and if he pushes back strongly that in itself is a red flag. There are plenty of skilled tradespeople out there who run their businesses above board and would never dream of putting a client in this position.
If you've already provisionally agreed to pay in cash, it's not too late to renegotiate. You're the customer and you hold the power. Don't be afraid to change your mind or to walk away if you feel pressured into something that doesn't sit right with you.
Trust your gut. The inconvenience of finding another builder is a small price to pay compared to the financial and legal risk of going ahead under questionable terms.
In the end, this isn't just a question of money – it's about integrity, personal safety and peace of mind. You shouldn't have to compromise your values or put yourself at risk just to get work done on your home.
The right builder will respect that and the right choice will leave you with more than just a new kitchen or extension – it will leave your conscience clear too.
I hope this helps,
– Sam