Is this VAT fraud?

[DamC82]

As a previous poster pointed out, he's just acting the maggot and attempting to stall paying you.
The line about the accountant is classic , my accountant doesn't pay my invoices , great if he did!

Youre probably at a disadvantage not being registered in as far as materials are concerned as your clients can't claim back the 23%.

That said he agreed a price he should pay.

In my experience there are some unreal chancers out there with angles on vat, who take the good out of doing business with them .

 

[S.L.F]

Youre probably at a disadvantage not being registered in as far as materials are concerned as your clients can't claim back the 23%.

The prices for my materials is quite small compared to the costs for labour so for me going the VAT route is not something I want to do.

Could be as little as 5-7% of the costs.

The VAT would be as little as 1.61% of the entire contract.

In my experience there are some unreal chancers out there with angles on vat, who take the good out of doing business with them .

Indeed there are, learned the hard way that business usually is done by honourable people but there are some who take advantage of it.

Simple thing to do is to make sure you get a 50% deposit and make sure when you start on site you get another deposit of say 25%, the when half way through get more 15% and leave say 10% till the final bill.

 

[T McGibney]

The point I am trying in-eloquently to make is that the reason he's holding payment is because he wants to use my VAT receipts (In my name and plan to use them against my income at the end of the year) so he can claim back VAT which he is not entitled to.

But that makes no sense. He might as well search your bins and find a random receipt for a Dunnes or Tesco grocery shop and use this to make a fake VAT claim.

He's playing you.

 

[S.L.F]

But that makes no sense. He might as well search your bins and find a random receipt for a Dunnes or Tesco grocery shop and use this to make a fake VAT claim.

He's playing you.

I really don't know what is going through his mind to be honest.

However I sent him an e-mail telling him if I was not paid by a certain day I would go into revenue and ask them if he was entitled to claim VAT back on receipts that I paid for.

Anyway we have reached agreement, it is not the full amount but right now I don't care.

Get it done and paid and forget it forever and remember the simple rule, if I don't like or have doubts about someone they will be given a FOP.

I'll expect 50% up front, 25% when I get onto site and the remainder when I finish.