Can I get money back ??

[Cocoatheclown]

NC for this one as may be outing - please don't shout at me for being a dork.....

I took ages for me to get a builder to do a small job for me. He quoted me a certain price but didn't give me any paperwork. I also was concerned when he wouldn't take a cheque but if I insisted he would have to charge VAT. I thought it was a bit odd but said it was OK if it didn't cost any more. He said it wouldn't.
I still thought it didn't sound right so I sent a text saying had we agreed the price was X? He said yes, Y + VAT but didn't say the rate of VAT.

He did the job and seemed a competent worker.

When I got sent the bill it was way over what we originally agreed and I had been charged the VAT at 20%. I paid it because I didn't want him to come back and take the materials he'd used away.

I found out later that you can't charge VAT without being registered and you must put your VAT number on the bill.

Have I been scammed and I am worried I've got involved in something illegal.

What should I do ??

Well I think if they have materials and you pay for them to be installed it’s 5% VAT not 20. Have a look at the VAT laws where you are.

That said his money and VAT dealings are on him not you - so I wouldn’t worry about that.

I wouldn’t do anything.

Its been paid.

@Threelittlelambs

Not quite sure where the VAT rate info has come from. Completely incorrect. (Unless not in UK).

My assumption would be that he was wanting to do a "cash" job and not properly record it in his tax records. When you wanted to pay by cheque, he would then need to record it properly and therefore needed to charge VAT.

That said, for any job done at your home, I would always check whether VAT needed to be added to the quote before work commenced.

Isn't VAT always 20%?

No. For building it depends on the type of work. Most work should be charged at the standard rate (20%), but some work is charged at a reduced rate of 5% and some work is charged at 0%. However, Threelittlelambs is completely wrong to suggest that the OP's work should have been charged at 5%.

Threelittlelambs is completely wrong to suggest that the OP's work should have been charged at 5%

No said check where you are located. 5% does apply to some building works in the UK, OP isn’t said what works were completed. Besides, what she’s asking is about a cash in hand job V an on the books job, however you pay it’s down to the builder to square the VAT etc no OP and she’s done nothing wrong bar insists on paying via check and then complaining about the 20% additional cost.

OP, the VAT threshold is currently no less than £85,000 p.a. in the U.K. (It may or may not have gone up in the Spring.) Do you have the impression this builder makes that kind of money?

Yes, he most certainly should have given you his VAT info if he was charging it.

You haven’t done anything wrong and won’t get into trouble but I think it’s possible that he was essentially charging you an extra 20% to offset the taxes he will now be paying on this money.

@poetryandwine
This guy is a one-man-band, I doubt he earns that much.

And yes am am pretty pissed at having to pay extra money because I wanted to pay by cheque. There is something fishy here.

Yes, 5% does apply to some building works in the UK but your suggestion that if they supply materials and you pay to have them installed only attracts VAT at 5% is wrong unless the OP is on the Isle of Man. Outside the Isle of Man, the 5% rate applies where:

• the builder is installing certain energy saving, heating or security products for people over 60 or in receipt of certain benefits
• the builder is installing mobility aids for people over 60
• the builder is converting a building into a house or flats
• the builder is renovating an empty house or flat

Is he actually VAT registered? On his invoice there should be a vat no.
If he hasnt Given one, ask and say you need it for your accounts /records.

@Chocolatiestchocolate

"Is he actually VAT registered? On his invoice there should be a vat no.
If he hasnt Given one, ask and say you need it for your accounts /records."

I have done that and he has refused to give it to me.

I'd report him to HMRC for suspicious financial behaviour. But then I'm a miserable old cow...

@Schooldil3ma
"I'd report him to HMRC for suspicious financial behaviour. But then I'm a miserable old cow..."

That did cross my mind...