Should I accept cash as a self-employed person?
Should I accept cash self employed? Cash is now just 8% of UK payments. Here is my take on when it still makes sense, and what to keep for HMRC.
In 2015, cash made up 45% of all payments in the UK. In 2025 it was 8%. That's from UK Finance, in its Payment Markets Report published on 19 August 2026.
So, should you accept cash as a self-employed person? My answer is yes, but only on purpose. Not out of habit.
Is cash still worth accepting?
UK Finance counted 3.9 billion cash payments in 2025, down from 4.3 billion in 2024. Cash share fell from 9% to 8% in a year. Card payments were 64% of all payments.
Faster Payments and other remote banking payments hit 6.2 billion in 2025, up 10% on the year before. That's the second most used method after debit cards.
Most of your customers have already moved. Some haven't. A plumber with elderly customers, a market stall, a window cleaner who does a street every fortnight. Cash still fits some jobs.
But I don't think you should offer it by default. Here's why.
What does cash cost you?
It looks free. It isn't.
- Time. You carry it, count it and take it to the bank. That's unpaid work.
- Risk. Cash in a van or a bag can be lost or stolen. A bank transfer can't.
- Proof. A transfer shows the amount, the date and who paid. With cash, you rely on your own notes.
- Awkwardness. "Have you got change for a £50?" is a real conversation nobody enjoys.
None of these is huge alone. Together they add up, and you pay them every week.
What does HMRC expect from cash income?
Nothing different. Cash is income like any other.
GOV.UK says sole traders must keep records of business income and expenses for their Self Assessment tax return. If you don't prepare accounts, you record income and expenses for each tax year, 6 April to 5 April. GOV.UK also says you must keep your records for at least 5 years after the 31 January submission deadline of the relevant tax year, and that HMRC may check them.
So every cash job needs a line in your records on the day it happens. A note in your phone is fine. A pile of envelopes that you sort out in January is not.
If you're heading towards digital record keeping anyway, my post on Making Tax Digital for sole traders covers what changes.
When do I still say yes to cash?
Say you're a window cleaner with 60 regular customers. Twelve of them have always paid by leaving cash under a plant pot. Those twelve aren't going to download a banking app for you.
I'd keep cash for them and do three things:
- Write each payment in your records the same day, with the customer's name and the amount.
- Pay the cash into your bank account soon after. Don't let it build up at home.
- Offer a bank transfer for every other customer, and make it the default on your invoices.
That's a fair deal. The customer who prefers cash still gets cash. You stop spending your Fridays counting it.
When do I say no?
I'd say no to cash for anything big. A £40 clean is one thing. A £900 job is another. Big sums are where mistakes and disputes cost you most.
I'd also say no when you need a deposit up front. A bank payment on the day you agree the work is easier to prove, and it's easier to chase if it goes wrong. I've written about that in should I take a deposit. If you take cash, you're also more likely to pay it into the wrong place. Do I need a business bank account as a sole trader has my view on keeping the two apart.
And I'd say no if you're not good at paperwork. Be honest with yourself. If you know you'll forget to log it, cash is a risk to your tax return, not just your wallet.
What I'd do
Keep cash as a favour to the customers who need it. Make a bank payment the normal way to pay. Put your sort code, account number and a clear payment reference on every invoice. My guide to how to write an invoice as a sole trader shows what to include.
Cash isn't dying tomorrow. UK Finance's own wording is a "stable, residual role for cash". Residual means small and left over. Plan your business around that.
That's also why we built Vcents around WhatsApp. You send a payment request in the chat your customer already uses, they pay from their bank app, and you get a record straight away. No counting needed.
Sources
Vcents turns the thread into a payment.
Ask for money in plain English. Your customer taps once, authorises in their own bank, and the receipt lands back in the chat.
How receiving payments works