[Misc] Wild variation in building quotes

[Weststander]

Just wanted to ask some advice regarding payment if anyone knows anything or has any opinions!

The building director has said that I would be able to pay his tradesmen (electrician, plumber, plasterer, carpenter etc) in cash which would save money in VAT. Now I don't think we're going to do this but wanted to ask people's take on it. Does this make me a tax dodger or is it quite a done thing? The rest of the payment is to the company's account which will be used to buy materials etc so that will all include VAT as they're VAT registered. His trades are all in house. Any thoughts appreciated.

"In house" ... suggests on his payroll, I would guess not.

Most likely subbies.

 

[Goldstone1976]

Not if he gets a receipt of each person he pays as I doubt the tradesman are VAT registered.

Well, that’s not the premise in his post...

 

[Justice]

Well, that’s not the premise in his post...

He clearly says could I pay the tradesman in cash which he can if he wishes and not become a tax dodger.

 

[Goldstone1976]

He clearly says could I pay the tradesman in cash which he can if he wishes and not become a tax dodger.

You miss the very next words in that same sentence ...”which would save money in VAT”. If you take the sentence as a whole he’s clearly being offered the chance to be a tax dodger, which, if he accepted, he would be. Along with millions of other people.

There’s no value judgement here. The man asked a question; it seems clear as day to me (by merely reading all the words) what he’s being offered. Whether he takes it up is a matter of personal choice. I suspect the vast majority would and do.

 

[Mike Small]

"In house" ... suggests on his payroll, I would guess not.

Most likely subbies.

His company information suggests he has an electrician in house but I’m not completely convinced it’s not a subcontractor like you say. Seeing as he has raised the idea of me paying them in cash it would suggest this as him receiving cash to avoid VAT wouldn’t make sense seeing as he is VAT registered.

 

[Mike Small]

He clearly says could I pay the tradesman in cash which he can if he wishes and not become a tax dodger.

I don’t think it will be a situation that I get a receipt however.

 

[Mike Small]

You miss the very next words in that same sentence ...”which would save money in VAT”. If you take the sentence as a whole he’s clearly being offered the chance to be a tax dodger, which, if he accepted, he would be. Along with millions of other people.

There’s no value judgement here. The man asked a question; it seems clear as day to me (by merely reading all the words) what he’s being offered. Whether he takes it up is a matter of personal choice. I suspect the vast majority would and do.

To the point! It feels like a NSC poll on this matter would be useful! Wonder what others would do.

It would save me thousands but does feel underhand and I can’t exactly moan about Amazon etc and the very wealthy who do such things. It would also make things harder if there is any dispute or problems with the work (I don’t think this will happen though).

Maybe I should do it and give the savings to international charities hit by the reduced overseas spending!

 

[edna krabappel]

Thanks [MENTION=27447]Goldstone1976[/MENTION] for starting this thread. With a bit of luck, we'll be needing to use some builders when our sale eventually goes through. We're hoping to extend the kitchen, and perhaps to dig down underneath the extended area to have a cellar/extra-storage space. We know a couple of reliable builders, but would be grateful for any advice.

Maybe steer clear of these guys.

https://www.dailymail.co.uk/news/article-8908815/Chelsea-mansion-collapses-building-work-create-mega-basement-6m-property.html

 

[Weststander]

His company information suggests he has an electrician in house but I’m not completely convinced it’s not a subcontractor like you say. Seeing as he has raised the idea of me paying them in cash it would suggest this as him receiving cash to avoid VAT wouldn’t make sense seeing as he is VAT registered.

What I’ve come across, that seems to work, is the home owner agreeing to deal with certain trades directly eg a wall tiler, electrician, chippy. You pay them directly.

If this is the legit case, how about paying them by cheque or bank transfer? Pressure to pay in cash, mentioned by you or another poster, what’s that all about?

Obviously this cannot work for works within a written contract price, otherwise you’re helping tax evasion. It’s the more serious more aspect of VAT ... the overall contractor if small is evading VAT registration or they’re orchestrating parts of the contract being outside VAT. This isn’t a grey area, no matter what anyone says. BUT as the home owner I think you can sleep at night, they tax evader is taking the risks.

 

[Rowdey]

To the point! It feels like a NSC poll on this matter would be useful! Wonder what others would do.

It would save me thousands but does feel underhand and I can’t exactly moan about Amazon etc and the very wealthy who do such things. It would also make things harder if there is any dispute or problems with the work (I don’t think this will happen though).

Maybe I should do it and give the savings to international charities hit by the reduced overseas spending!

Sparks and Gas/plumbers, you want receipts for their work (Building control sign off's etc) but plasterers/tilers.. will take your cash all job long..!

 

[Justice]

To the point! It feels like a NSC poll on this matter would be useful! Wonder what others would do.

It would save me thousands but does feel underhand and I can’t exactly moan about Amazon etc and the very wealthy who do such things. It would also make things harder if there is any dispute or problems with the work (I don’t think this will happen though).

Maybe I should do it and give the savings to international charities hit by the reduced overseas spending!

Why would you want to pay tax twice? Don’t feel guilty you have already paid tax on your money. I worked for a VAT inspector gods honest truth he wanted a cash deal. I was sceptical although at the time wasn’t vat registered. He paid in cash never heard a word and that was 15 years ago.

 

[Rowdey]

To the point! It feels like a NSC poll on this matter would be useful! Wonder what others would do.

It would save me thousands but does feel underhand and I can’t exactly moan about Amazon etc and the very wealthy who do such things. It would also make things harder if there is any dispute or problems with the work (I don’t think this will happen though).

Maybe I should do it and give the savings to international charities hit by the reduced overseas spending!

You cant save vat on materials, only labour, so sub-trade labour (not materials and not the main contractor costs) needs to be over 20k to be saving 1000's..
That's 20k you have to withdraw in folding from a bank, happens a lot of time mind..!