Cash is king

I am a qualified accountant. My wife and I own our home jointly and this needs a new kitchen and other structural work. We have been recommended to a local builder who has completed excellent work for a close friend.

On visiting us the builder has given an approximate quote for the work of about £15 000 which is almost half what we expected. The builder is not VAT registered and the way in which he wants the transaction to work is that we pay for all materials and work done by other contractors direct while we pay him and his associate £100 each in cash per day or £125 each per day by cheque.

I am concerned about the possible money laundering and tax evasion aspects of this proposed transaction while stressing that the builder is not my client....