Yes, a pub in the UK can legally refuse cash and operate as card-only. There is no law requiring businesses to accept cash, as retailers can decide which payment methods they accept for goods and services. While cash is legal tender, this concept only applies to the settlement of debt, not daily retail transactions.
In the UK it is not illegal for businesses to refuse cash as payment and, in the same breath, it's not illegal for them to refuse card payments, either. The only situation where this isn't the case is when a business is accepting payment for a debt.
We do not have powers to require retailers to accept cash as payment for goods or services. The existing law allows retailers to decide whether to accept cash or to only accept digital payments.
False. The British government has not announced rules that ban cash payments above 10,000 pounds or that require identity checks for payments above 6,300 pounds from 2027. This article was produced by the Reuters Fact Check team. Read more about our fact-checking work.
Since 2002, UK law has granted police officers and customs officials the authority to seize cash exceeding £1,000 if they hold a reasonable suspicion that the money is intended for use in unlawful activities or if they suspect that its origin lies in illegal conduct.
'Cash saves you money!' says pub landlord who REFUSES to take card payments
How much cash can you keep at home legally in the UK?
Legal Implications You Should Know
While there's no specific limit on home cash storage, amounts over £10,000 may require documentation during investigations or audits. If you can't explain where the money came from or why you're keeping it at home, it could be seized under the Proceeds of Crime Act.
It is illegal to underpay an employee just because they are being paid in cash rather than by bank transfer. As long as a business calculates, declares, and pays the right taxes, cash in hand pay is legal. Read more: can shops refuse cash payments?
The UK is rapidly moving towards being a low-cash, but not fully cashless, society, with digital payments dominating, yet cash remains crucial for millions, especially vulnerable groups, leading to government efforts to protect access via legislation, banking hubs, and ATMs, even as some businesses go card-only and digital ID plans emerge. While cash use has plummeted (less than 10% of payments in 2024/25), the Bank of England and officials stress that a completely cashless system isn't feasible or desirable yet, focusing on maintaining choice and access for everyone, including the elderly and low-income individuals.
Even if the bill is split, paying Rs 2 lakh or above in cash is not allowed. Such payments must be made through bank transfer, UPI, cheque, or a card, says Soni. Soni further says for loans between people, the rule is stricter. If you take or give a loan of Rs 20,000 or more, it cannot be in cash.
Cash deposits over $5,000 don't automatically trigger a government report. But they do put the transaction into a higher scrutiny bucket inside your bank. Tellers are trained to watch for patterns that look unusual for you. A single large deposit tied to a clear explanation rarely raises eyebrows.
Tesco caused uproar among shoppers this week when it confirmed it would ban cash payments at some of its cafes. The card-only policy will be rolled out to 40 in-store eateries. The supermarket has reportedly taken the decision after a new electronic ordering system helped to significantly cut down queues.
What happens if you get caught paying cash in hand?
You can face prosecution for tax evasion. You can be fined or in some circumstances face imprisonment. If you have had fines for tax evasion, it may affect your ability to obtain credit or secure employment in the future.
There is also a practical security advantage with cash. Although debit and credit cards often have personal identification numbers (PIN) and chips for extra security, there is less risk of identity theft or your information getting stolen online when using cash.
The answer is, yes, the vast majority of London pubs do accept cash payments. While digital and card payments have become increasingly popular, London's pubs, known for their traditional charm and historic roots, continue to welcome cash transactions.
Lots of people argue that paying with cash should be accepted everywhere, but this isn't always the case. Ultimately, it is up to each business to decide whether to accept payments by cash, card or both – to be clear, it is completely legal for a shop to refuse cash payments.
Cash-in-hand payments are legal but must follow strict tax and employment law rules. You must deduct and report tax and National Insurance and ensure staff receive payslips and legal entitlements. Staff must agree to be paid in cash, and you must treat it as net pay, not gross.
No person is permitted to accept Rs. 20,000 or more in cash a) for any loan or deposit or b) any amount in relation to transfer of any immovable property (even if transfer does not take place).
We're delivering on our commitment to mandate cash acceptance for essential purchases by finalising regulations that require fuel and grocery retailers to accept cash from 1 January 2026. We're making it mandatory for businesses to accept cash when they sell these essential items.
Sweden has officially become the first country in the world to go completely cashless. Almost every shop, café, and public transport system in Sweden now accepts only digital payments like cards or mobile apps. The popular app “Swish,” launched in 2012, is used by millions of Swedes to send and receive money instantly.
It is not illegal to keep cash at home in the UK, but it should be stored securely to mitigate risks. The amount of cash to have on hand varies, but a small amount for emergencies is recommended while keeping most in a secure bank account.
Q: What is the future of money? The future of money is expected to be heavily influenced by technology. Predictions include the rise of cashless societies, the growth of cryptocurrencies, the continued adoption of digital currencies, and the potential offering of a Central Bank Digital Currency (CBDC) by governments.
While cash is considered a legal tender, businesses have no legal obligation to accept it and have the right to set their own payment policies. This means that a brick-and-mortar store can refuse cash, just as they can reject other forms of payment, such as certain credit card payments or cheques.
Paying cleaners cash in hand may lead to tax evasion if the income is not reported to the tax authorities. Both the payer and the cleaner could be held liable for tax evasion if they fail to report the income and pay the appropriate taxes.
