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  • FIRST POST
    • smorri4
    • By smorri4 3rd Jan 18, 6:46 PM
    • 23Posts
    • 5Thanks
    smorri4
    Builder miscalculated tax on invoice
    • #1
    • 3rd Jan 18, 6:46 PM
    Builder miscalculated tax on invoice 3rd Jan 18 at 6:46 PM
    Hello.
    We had some building work and new kitchen install completed in November 2017. Final invoice was paid for in full on 17th Nov. Today I receive a letter from said builder saying that we owe £760. They also say the letter received today was written and sent on 22/12 and prior to that they say they sent another letter on 12/12/17 outlining the administration error that meant they did not charge us correct vat. Where do I stand please? I will add that the company did not do a great job of the kitchen and so Iím hesitant to cough up more money especially as they added on a ridiculous amount of Ďextrasí that were not even on the original estimate. They are theeatening legal action if we donít pay.
Page 1
    • AndyMc.....
    • By AndyMc..... 3rd Jan 18, 7:00 PM
    • 903 Posts
    • 667 Thanks
    AndyMc.....
    • #2
    • 3rd Jan 18, 7:00 PM
    • #2
    • 3rd Jan 18, 7:00 PM
    Hello.
    We had some building work and new kitchen install completed in November 2017. Final invoice was paid for in full on 17th Nov. Today I receive a letter from said builder saying that we owe £760. They also say the letter received today was written and sent on 22/12 and prior to that they say they sent another letter on 12/12/17 outlining the administration error that meant they did not charge us correct vat. Where do I stand please? I will add that the company did not do a great job of the kitchen and so I’m hesitant to cough up more money especially as they added on a ridiculous amount of ‘extras’ that were not even on the original estimate. They are theeatening legal action if we don’t pay.
    Originally posted by smorri4
    Have you paid what was originally quoted? ie The final bill inclusive of vat or were you quoted £x +vat.
    • Enterprise 1701C
    • By Enterprise 1701C 3rd Jan 18, 7:23 PM
    • 18,557 Posts
    • 201,762 Thanks
    Enterprise 1701C
    • #3
    • 3rd Jan 18, 7:23 PM
    • #3
    • 3rd Jan 18, 7:23 PM
    Did they have E&OE on the invoice (errors and omissions excepted)
    What is this life if, full of care, we have no time to stand and stare
    • EachPenny
    • By EachPenny 3rd Jan 18, 8:00 PM
    • 3,985 Posts
    • 8,132 Thanks
    EachPenny
    • #4
    • 3rd Jan 18, 8:00 PM
    • #4
    • 3rd Jan 18, 8:00 PM
    ....that meant they did not charge us correct vat.
    Originally posted by smorri4
    Was it a proper VAT invoice (i.e. having all required features) ?
    Did it show the % rate they were charging VAT at?
    Was the amount of VAT shown separately and correctly calculated?
    "In the future, everyone will be rich for 15 minutes"
    • TheCyclingProgrammer
    • By TheCyclingProgrammer 3rd Jan 18, 8:03 PM
    • 2,987 Posts
    • 1,706 Thanks
    TheCyclingProgrammer
    • #5
    • 3rd Jan 18, 8:03 PM
    • #5
    • 3rd Jan 18, 8:03 PM
    As the other posters have said I think this will largely come down to what you’ve paid and what you agreed to pay.

    Did you get a fixed quote? Was that quote exclusive or inclusive of VAT? Does it differ to what you did pay? In what way was the VAT miscalculated? Assuming it was all standard rated, did your invoice show VAT separately and was it 20% of the net?

    Did you have any other form of signed conditions or terms of business?
    Last edited by TheCyclingProgrammer; 03-01-2018 at 8:07 PM.
    • theonlywayisup
    • By theonlywayisup 3rd Jan 18, 8:06 PM
    • 11,713 Posts
    • 7,910 Thanks
    theonlywayisup
    • #6
    • 3rd Jan 18, 8:06 PM
    • #6
    • 3rd Jan 18, 8:06 PM
    Are you saying the job was £3800 and now the boiler has added VAT?
    • trailingspouse
    • By trailingspouse 3rd Jan 18, 8:22 PM
    • 2,602 Posts
    • 4,031 Thanks
    trailingspouse
    • #7
    • 3rd Jan 18, 8:22 PM
    • #7
    • 3rd Jan 18, 8:22 PM
    And finally - is the builder VAT registered? If he is, he will have a VAT registration number which should be on his invoice.

    If it was a genuine mistake, and you knew that the bill should include VAT, then I would pay up - mistakes happen, and he will have to pay the money to HMRC even though he hasn't received it from you.

    If, on the other hand, you think he's pulling a fast one then tell him that you paid the he amount asked for and won't be paying a penny more.
    • road2manchester
    • By road2manchester 4th Jan 18, 11:09 PM
    • 40 Posts
    • 80 Thanks
    road2manchester
    • #8
    • 4th Jan 18, 11:09 PM
    • #8
    • 4th Jan 18, 11:09 PM
    Pah !!!! Write to them with all the extras you didn't ask for priced up. Deduct this from the VAT mistake BUT FIRST check their VAT number with HMRC on line. Make sure it's genuine. If there is no VAT number on the invoice they can not claim more from you. As above the quote itself is important in particular the wording and a copy of their terms and conditions will help. Go to Citizens Advise or just pop into any accountant. 1st meeting is generally free.
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