builders charging vat

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ava1

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just wondering - some quotes builders charge vat and others dont - what are the reprecussions for us ...private dwelling
 
main point is a legal issue

if you pay cash and you were unlucky enough to end up in court because the builders work was very poor or any other reason, the judge will throw it out straight away as they wont listen to a case where the baisis of the contract was to defraud the revenue of VAT.
 
kkelliher said:
main point is a legal issue

if you pay cash and you were unlucky enough to end up in court because the builders work was very poor or any other reason, the judge will throw it out straight away as they wont listen to a case where the baisis of the contract was to defraud the revenue of VAT.
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Are you sure thats correct? seems odd.
 
Interesting, So if a service provider doesn't charge VAT and the job goes wrong the service user has no comeback. Thats handy to know. I'd rather get a bill from the revenue for outstanding VAT then be sued if a job went very wrong ;)
 
You only have to register for vat if your turnover is over a certian level . A builder may not be charging vat if his turnover did not meet the threshold , it can happen to small builders who may not be supplying material just labour only.
 
there is a major difference between someone not charging VAT as they are not registered and those who not charging VAT because they are doing a deal for Cash so it does depend on the circumstance.
 
In my experiance people will do whatever they can not to pay VAT. My response is always the same as in you wouldn't dream of buying something in a shop and telling the cashier that you weren't going to pay the VAT. I run a small business that charges VAT and have staff to pay so everything has to go through the books. I make sure all quotes/invoices include VAT. Charging VAT is no skin off my nose and it surprises me when people think they are doing me a favour when they offer to pay cash, when in fact they are trying to do themselves a favour.
I was unaware that there is no legal comeback if a client doesn't pay VAT. Another reason to give the VAT dodgers.
 
the law is that if a contract is based on a cash deal to avoid VAT that court wont look at it.

People dont pay VAT for different reasons that are not all ilegal.

Its where the basis of the agreement is for cash to aovid VAT that the court will throw out.
 
So I can agree a cash deal with a builder , have him do all the work and just not pay ?
 
jhegarty said:
So I can agree a cash deal with a builder , have him do all the work and just not pay ?
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technically yes

but you could expect to get alot of hasstle and I would expect the builder to knock down all the work and probably a bit more
 
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