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How do you feel about taking cash?

Discussion in 'Private tutors' started by Yogananda50, Aug 28, 2020.

  1. Yogananda50

    Yogananda50 New commenter

    I haven’t started tutoring yet, but I think I will feel embarrassed from asking for cash after every lesson. It will prevent any sort of friendship from developing between you and the parents/students, because you will keep reinforcing that you’re only there for the money rather than helping the child.

    How do the tutors here feel about asking for money every lesson? Is it just normal for you?
     
  2. cwilson1983

    cwilson1983 Occasional commenter

    It's never an issue.
     
  3. BG54

    BG54 Occasional commenter

    Why is it any different to asking them to complete an internet transaction for payment? The money still leaves their possession. My fees were about 75-25 in favour of cash before the lockdown, now it's 100% internet banking, of course, but I never felt any discomfort about receiving cash. It's a professional transaction, like paying the plumber or electrician.
     
  4. gainly

    gainly Star commenter

    Pre- covid the majority of my clients paid cash at the end of each lesson, it was never an issue. Now I've had to move tuition online and they all pay by bank transfer.
     
  5. Bungie

    Bungie Occasional commenter

    It was never an issue. I used to say to new clients when the booking was made "and you pay me at the end of the lesson." Almost all paid cash and very occasionally a cheque.
     
  6. gainly

    gainly Star commenter

    I actually found it harder when people paid for a block of lessons as I had to keep reminding them when it was time to pay again. If they just paid at the end of the lesson it was much simpler. Some did pay by bank transfer at the end of each lesson and usually showed me on their phone that they had paid.
     
  7. Lespaul101

    Lespaul101 New commenter

    I don’t see the issue. The parents aren’t expecting you to be working for free and obviously fees would be discussed before commencing tuition.
     
  8. suzette

    suzette Occasional commenter

    Pre covid (and now), I never do cash. Mainly because of HMRC/Tax situation and it makes it clearer what you need to declare with them etc. I always get the client to pay by standing order/bank transfer into my tutoring business account (at least 24hrs beforehand). I think I'd find it hard to keep a track of cash and then you have to remember to bank it at some stage which is a bit of a pain. It's easier to for me this way and then you also don't have the issue of someone forgetting to pay on the day and then you have to chase the money up if they are a consistent late payer. (Which I would hate to do). I'm also registered with a couple of tutoring sites, so that's also paid into my account before the lesson takes place too.

    Now we're in a covid situation, I don't think I would get clients to pay cash, as I would have to clean all of it. I know all of our money is easy to wipe clean, but I personally would feel I would have to clean it. This is why most companies are encouraging us all to pay by card, as some poor person may have to end up cleaning it all and it also means the person that has to take the money at checkouts doesn't have to handle it.

    If I did however take cash, I wouldn't feel embarrassed about asking people for it. It is your business and if this is how you run your business, then that's what clients have to do to have experience of your business.
     
    alice lowe and Kateray1 like this.
  9. Kateray1

    Kateray1 Occasional commenter

    I agree with Suzette’s first bit.

    Taking cash is a tax dodge. You are supposed to be able to prove your earnings on your tax return and you can’t do that if you are not recording it or have bank statements to prove the income.

    I personally would not do this.
    Try going through a tutoring student platform that deals with all the money side for you.
     
  10. adamcreen

    adamcreen Occasional commenter

    1. You are there for the money
    2. I have no problem with cash, I give parents a record of lessons and money paid, the HMRC would have to prove a negative
    3. I much prefer electronic payment and will send daily texts if money doesn't appear
    4. If a tutoring platform takes a cut, then run a mile
     
  11. Lespaul101

    Lespaul101 New commenter

    taking cash is NOT a cash dodge. All you need to do is keep a record of all lessons. I’m sure all good tutors keep some kind of planning sheet for each lesson. You know your hourly rate , so multiply by number of lessons done and that’s your total earnings. Simple.
     
    phlogiston and harsh-but-fair like this.
  12. BG54

    BG54 Occasional commenter

    A rather sweeping generalisation.

    I keep a diary exclusively to record the date and time of each lesson and for each tax year I keep a spreadsheet detailing the total gross payment received per month from each client, together with total deductible expenses, including any agency commission. My bank accounts are paperless but I could easily print out the monthly statements if HMRC requested them.
     
    harsh-but-fair likes this.
  13. harsh-but-fair

    harsh-but-fair Star commenter

    Oh dear.
     
  14. langteacher

    langteacher Occasional commenter

    I have a mixture of cash and bank transfer.
    I find it quite offensive to hear someone say cash is a tax dodge!! All my lessons are on my Google calendar. I don't identify which are cash and which are bank transfer as they are all declared.
    I claimed the self employed grant because I've declared my earnings and therefore I received a reasonable amount. Something I couldn't have done it cash was a tax dodge!
    Back to the OP. You can be friendly with someone and still receive payment. It's really not a problem. If people pay upfront I give them an invoice and on the last one of the block I give them another
     
    ladyhawk likes this.
  15. ladyhawk

    ladyhawk New commenter

    I tell them when they first contact me that payment is at the time of the lesson - no different to many driving instructors, tradespeople, etc. I accept cash or cheque. I no longer accept BACS as I waste too much time chasing up payments. If any parents want different terms, then I recommend they contact other tutors - that usually shuts them up.
     
    phlogiston likes this.
  16. ladyhawk

    ladyhawk New commenter

    Taking cash is not a tax dodge, failing to declare it is. I keep spreadsheet records of all payments, expenses, etc. to simplify completing tax returns. I’m sure others are doing the same. I think your comment probably says more about you than the rest of us.
     
    phlogiston and harsh-but-fair like this.
  17. Bungie

    Bungie Occasional commenter

    "Taking cash is a tax dodge."
    This is insulting rubbish. I kept very careful records and declared everything to HMRC. Please don't judge others by your own - obviously low - moral standards.
     
    ladyhawk and harsh-but-fair like this.
  18. zetafunction

    zetafunction New commenter

    In 2018, Amazon nearly doubled its profits, from $5.6bn to $11.2bn. But far from paying the statutory 21% income tax rate, it reported a $129m federal income tax rebate for the year – a tax rate of -1%.
     
  19. zetafunction

    zetafunction New commenter

    Despite Apple’s £1.2bn UK sales, the tech giant’s tax bill from its British shops fell by more than 60% to just £3.8m last year.
     
  20. zetafunction

    zetafunction New commenter

    The corporation tax payment of £44.3m was less than the £65.6m Google UK paid a year earlier, and meant the company paid the 'equivalent' of 2.73% of its revenue in corporation tax, before losses and offsets were taken into account on the balance sheet.
     
    harsh-but-fair likes this.

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