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Building work + VAT


Ed the Wool

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Thinking of having a pretty sizable piece of work on my flat. Builder said he'd do it for cash, but I don't fancy withdrawing 10K a week for a few months out of my account in cash and carrying it across London. If he gets paid into his bank or by cheque it'd have to have VAT on it.

 

Is there any other way to do it?

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I'd be concerned that someone I'm giving 000's to doesn't want to pay the VAT, like I get that he'll tell you that this is for your benefit because you save but it's going to call into question how scrupulous this builder is.

 

If it was a few k I'd be less concerned than it was if it were 60k and if you need proof of payment for a guarantee or any other claim against the builder you're giving yourself a potential nightmare

 

that and you can f*ck off calling the tax avoiders c**** in future

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Thinking of having a pretty sizable piece of work on my flat. Builder said he'd do it for cash, but I don't fancy withdrawing 10K a week for a few months out of my account in cash and carrying it across London. If he gets paid into his bank or by cheque it'd have to have VAT on it.

 

Is there any other way to do it?

 

I hope the job goes well for your sake, any disputes and you won't have much recourse.

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I'd be concerned that someone I'm giving 000's to doesn't want to pay the VAT, like I get that he'll tell you that this is for your benefit because you save but it's going to call into question how scrupulous this builder is.

 

If it was a few k I'd be less concerned than it was if it were 60k and if you need proof of payment for a guarantee or any other claim against the builder you're giving yourself a potential nightmare

 

that and you can f*ck off calling the tax avoiders c**** in future

 

The builder is sound, am sure of that. True on the claim thing, it is a risk, again I've not totally decided how to pay for it yet. It might be that I go with a different builder from up north and try and get it done cheaper.

 

I wondered if there was some way of setting up a company and then claiming the VAT back.

 

Cheers for all the replies so far.

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I'd be concerned that someone I'm giving 000's to doesn't want to pay the VAT, like I get that he'll tell you that this is for your benefit because you save but it's going to call into question how scrupulous this builder is.

 

If it was a few k I'd be less concerned than it was if it were 60k and if you need proof of payment for a guarantee or any other claim against the builder you're giving yourself a potential nightmare

 

that and you can f*ck off calling the tax avoiders c**** in future

 

We are in the middle of a major barn refurb and as much as I'd like to save a few quid there's no way I'd do a cash deal for any of the structural work for this reason. Fine if you want to pay plasterers, decorators, laborers, chippy etc cash.

 

Ed given the sums involved it sounds like you might be doing some strucural work, if so you will need to get it signed off by the local building inspector and I doubt yer man will want him sniffing around if its cash only.

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The builder is sound, am sure of that. True on the claim thing, it is a risk, again I've not totally decided how to pay for it yet. It might be that I go with a different builder from up north and try and get it done cheaper.

 

I wondered if there was some way of setting up a company and then claiming the VAT back.

 

Cheers for all the replies so far.

 

here's the thing:

 

you will only need records of the work done if there is a dispute

 

giving you the paperwork does not = having to pay VAT

you pay him cash but he gives you the documentation you need - if you pay cash and he invoices you as an individual as opposed to a company then nobody else will ever know about the VAT thing as it won't go in to circulation

 

as for physically getting the money to him: first thing is to have a detailed schedule with signing off points - as that will happen as a function of the work done, he will actually need to show up at your place to do or oversee the work so you can pay him then

 

 

building regs has nothing to do with VAT or the money side of things btw, they just check the plan for the work, the methods used and then look at the actual work done to check certain aspects of it

Edited by Molby
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building regs has nothing to do with VAT or the money side of things btw, they just check the plan for the work, the methods used and then look at the actual work done to check certain aspects of it

 

True but if your gaff falls down, second target on the list is the building inspector who signed it off....could get messy.

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True but if your gaff falls down, second target on the list is the building inspector who signed it off....could get messy.

 

not very likely if it has been passed through building regs and even so, it still has nothing to do with VAT

 

 

look, the easiest way is this: the invoice has VAT on it and the client pays it all, less 20% - you don't pay VAT on your invoices you pay it on what you actually get paid

 

builders don't just f*** people over, they frequently get short-changed themselves so it's no biggie explaining the above, although I can't think who would be asking about whether VAT was paid if there was a legal dispute

 

 

more to the point, check the builder has adequate insurance, especially in respect of the specialist trades, so he can provide guarantees that are worthwhile

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not very likely if it has been passed through building regs and even so, it still has nothing to do with VAT

 

 

look, the easiest way is this: the invoice has VAT on it and the client pays it all, less 20% - you don't pay VAT on your invoices you pay it on what you actually get paid

 

builders don't just f*** people over, they frequently get short-changed themselves so it's no biggie explaining the above, although I can't think who would be asking about whether VAT was paid if there was a legal dispute

 

 

more to the point, check the builder has adequate insurance, especially in respect of the specialist trades, so he can provide guarantees that are worthwhile

 

Cheers Molby and Eskimo, that's useful. He's got good insurance.

 

Yeah there is a fair bit of structural, it's extending at basement level and then opening up a couple of walls, so needs steels. Have had detailed plans of work drawn up, so should be easy enough to tie him to a tight schedule of payment, linked to when stuff is completed.

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not very likely if it has been passed through building regs and even so, it still has nothing to do with VAT

 

 

look, the easiest way is this: the invoice has VAT on it and the client pays it all, less 20% - you don't pay VAT on your invoices you pay it on what you actually get paid

 

builders don't just f*** people over, they frequently get short-changed themselves so it's no biggie explaining the above, although I can't think who would be asking about whether VAT was paid if there was a legal dispute

 

 

more to the point, check the builder has adequate insurance, especially in respect of the specialist trades, so he can provide guarantees that are worthwhile

Lots of builders f*** people over, as do tradesmen. People often don't even realize its happened.

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Lots of builders f*** people over, as do tradesmen. People often don't even realize its happened.

 

 

and?

 

 

is that like a summary of the whole topic then?

 

 

 

nice, it's right up there with 'so in conclusion. getting building work done can be a rewarding experience if handled correctly'

 

Cheers Molby and Eskimo, that's useful. He's got good insurance.

 

Yeah there is a fair bit of structural, it's extending at basement level and then opening up a couple of walls, so needs steels. Have had detailed plans of work drawn up, so should be easy enough to tie him to a tight schedule of payment, linked to when stuff is completed.

 

 

to summarise then:

 

 

1 tight payment schedule that is in arrears and the signing off points are signalled by surveyor

 

2 he collects the cash from yours

 

3 he gives you invoices, but you don't use them - it's painless for him if he includes VAT but you simply appear to have not paid all of it

 

4 the work is backed up by guarantees, with insurance behind it

 

5 structural work means structural surveyor, with a set of drawings and calcs, backed up by professional indemnity insurance

 

 

 

 

 

that's it - follow the above and you're sorted

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and?

 

 

is that like a summary of the whole topic then?

 

 

 

nice, it's right up there with 'so in conclusion. getting building work done can be a rewarding experience if handled correctly'

 

 

 

 

to summarise then:

 

 

1 tight payment schedule that is in arrears and the signing off points are signalled by surveyor

 

2 he collects the cash from yours

 

3 he gives you invoices, but you don't use them - it's painless for him if he includes VAT but you simply appear to have not paid all of it

 

4 the work is backed up by guarantees, with insurance behind it

 

5 structural work means structural surveyor, with a set of drawings and calcs, backed up by professional indemnity insurance

 

 

 

 

 

that's it - follow the above and you're sorted

 

 

You make lots of good points that I agree strongly with but you also said builders don't just f*** people over. Which is b******s, frankly.

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You make lots of good points that I agree strongly with but you also said builders don't just f*** people over. Which is b******s, frankly.

 

 

ah, you're right...my apologies for expressing myself poorly - wrote that in a hurry

 

 

I was trying to say that although they often f*** people over, they get f***ed over themselves (so the starting point for any negotiation of this kind is for both parties to accept that this is the case and that a solution needs to be found that as much as possible, deals with the concerns of both parties)

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ah, you're right...my apologies for expressing myself poorly - wrote that in a hurry

 

 

I was trying to say that although they often f*** people over, they get f***ed over themselves (so the starting point for any negotiation of this kind is for both parties to accept that this is the case and that a solution needs to be found that as much as possible, deals with the concerns of both parties)

 

they do, by suppliers and customers alike, but it then feeds itself and people look to recoup their losses where they can, by any means quite often. Keeping the dialogue open is vital.

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