Middle class families doing nothing illegal or moral by paying in cash, minister says - Telegraph

Middle class families doing nothing illegal or moral by paying in cash, minister says - Telegraph

Under UK tax laws there is nothing illegal in paying cash for anything!  It is up to the receiver to declare his/her/their income at the end of the tax year. If they choose not to do so, then it is their problem.
However, it is illegal to charge VAT, if a trader is not VAT registered. All VAT registered traders must show their VAT registration number on all receipts.
Giving a discount for cash saves traders waiting on cheques clearing via the banking system and time spent waiting in bank queues. Some cheques can take 5/7 days to clear.
Some cheque writers have their cheques bounced and others just phone their bank and stop them. Either of these actions may incur Court costs to try and recover their money.
All of the above affect ash flow in a small business with tight margins and so cash is better for them.