In short: Yes, UK law allows private businesses to refuse cash if they wish. While the Bank of England issues 'legal tender', this term only applies to settling debts, not requiring shops or services to accept cash outright.
Contactless payment either by card or phone is also very common in Edinburgh and has a limit of £100. Note: Those travelling to parts of Scotland outside of Edinburgh are encouraged to carry some cash on them, as some more rural businesses may not support card payments.
Let's clear up the confusion up front: Paying cash in hand is legal in England, Wales, Scotland, and Northern Ireland. However, it is only legal if you follow all the relevant tax and employment law requirements.
While the future demand for cash is uncertain, it is unlikely that cash will die out any time soon. The new £5 note, which entered circulation in September 2016, was our first note to be printed on polymer – a thin, flexible plastic. The £10 note followed in 2017.
Is it illegal for a business to refuse cash as payment?
Will the UK go completely cashless?
While digital adoption is increasing, 63% of respondents say they are unlikely to go completely cashless in the next 12 months. Only 8% report being entirely cashless today, up from 6% in late 2024. Graham Mott, LINK Director of Strategy. “Cash remains a critical part of the UK's payment landscape.
Sweden leads the Nordic countries—and all other nations worldwide—in its efforts to become a cashless economy. But countries such as Finland and Norway also aim to have their economies dominated by digital payments.
Is it illegal to refuse Scottish money in England?
Bank of England notes are the only banknotes that are legal tender in England and Wales. Scottish, Northern Ireland, Jersey, Guernsey and Manx banknotes are not legal tender in England and Wales. However, they are not illegal under English law and creditors and traders may accept them if they so choose.
What happens if you get caught paying cash in hand?
The penalties can be significant, with fines of up to 100% of the evaded tax and a potential prison sentence of up to seven years, depending on the severity of the offense. Additionally, individuals found guilty of tax evasion may face difficulties in obtaining credit or securing future employment.
You must declare cash of £10,000 or more to UK customs if you're carrying it between Great Britain (England, Scotland and Wales) and a country outside the UK. If you're travelling as a family or group with more than £10,000 in total (even if individuals are carrying less than that) you still need to make a declaration.
A small amount is good to have on hand but tap/contactless cards are the norm across the UK in most places. I used cash for tips and for the smaller shops, cafes.
Tipping is not widespread in Scotland, but a nice thing to do for good service. Consider tipping younger staff as their pay is very low. A 10% tip is average. It's ok to tip nothing; you will not cause offence.
So, what counts as legal tender? It varies throughout the UK. In England and Wales, it is Royal Mint coins Opens in a new window and Bank of England notes. In Scotland and Northern Ireland, it is only Royal Mint coins and not banknotes.
It's a common confusion because of a misunderstanding over what 'legal tender' means. Legal tender simply means what can't be refused as payment in a court ordered debt. It doesn't impact day-to-day life. There are no rules on what payments type firms have to accept as long as they are not discriminating.
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.
Do HMRC Investigate All Tip-Offs? HMRC does not investigate every tip-off they receive, but they do take all reports of tax fraud and evasion seriously. Each tip-off is assessed and prioritised based on the potential risk and credibility of the information.
In addition to keeping funds in a bank account, you should also keep between $100 and $300 cash in your wallet and about $1,000 in a safe at home for unexpected expenses.
It detects patterns, connections, and inconsistencies across an enormous range of data sources. The data sources that Connect feeds off of include: Information from other Government agencies/departments (DVLA, DWP, Companies House, Land Registry, electoral roll, council tax records, etc).
Although not illegal in Scotland, many people who live and work in the city centre find it upsetting and intrusive. Our City Centre Response Team works with a variety of statutory and voluntary organisations, as well as officers in other local authorities, to investigate ways of tackling this issue.
Scottish banknotes can be spent in England, but their acceptance is not guaranteed. Scottish notes are not legal tender in England; only genuine Bank of England notes are. However, they are fully backed and recognised as a valid currency, which means they are legitimate for transactions across Great Britain.
A 2024 report by the International Monetary Fund shows that countries like Sweden, Norway, and South Korea are leading the global shift, with Sweden on track to become the first fully cashless economy by the end of 2025.
Sweden is not the only Nordic country backpedalling on plans for a cashless society. Last year Norway, which has a popular equivalent to Swish called Vipps MobilePay, brought in legislation that means retailers can be fined or sanctioned if they will not accept cash.
That said, I don't think we'll go cashless in my lifetime.” While the emphasis on digital payment solutions continues to grow, it will take some time for cash to disappear – if it ever does. “The pandemic has shown us that anything is possible, as businesses have innovated and responded,” reflects Richard Brassey.
