Quote didnt mention VAT, final bill does??

joncarpet

Hi
We've just had our loft insulated and cvity wall insulation put it by the same company nad looking for advise on the final bill.
We've got a hand written quote for: Loft £199, Cavity Wall £150.
As it was the cheapest, we went ahead and had it done.
Now we've had the invoice through and it says:
Loft = £189.52
Cavity Wall = £166.67
VAT (5%) £17.81 giving a total of £374.00

Nothing was mentioned about VAT in any of the literature we've had from them.
As the quote was for £349, that is all i was expecting to pay.
Should I query it with them or is it ok to charge the VAT when not mentione before?

Powerful_Pierre

My understanding is that if VAT is not mentioned it is either deemed to be included in the estimate or they are not VAT registered. It cannot just be put on afterwards. Check the rules with revenue and customs and check the company is actually registered and not just trying to get an extra 5% out of you

liam8282

You should only have to pay what they initially quoted you.

The company is at fault because the quote should have been done on proper letter headed paper for starters, clearly showing that the company is registered for VAT, with their VAT registration number and company details on.

When the company did the quote they are obliged to let you know that VAT is payable, if they don't do this, they will have to suffer the VAT themselves, as they are misleading you into thinking that is the gross price that will be paid.

If on the quote they had put something like £349 plus vat, that would be ok, but as they haven't even mentioned VAT or even bothered to tell you that they were VAT registered, I would not pay it.

It may be an honest mistake by the company so you should just ask them about it first.

booty40uk

I agree with Liam. The quote should have said £349 inc or exc VAT. And any reputable company gives typed quotes on headed paper with all the relevant details.
I would pay the amount agreed and offer to forward the VAT directly to the inland revenue on their behalf, along with all their details obviously!
Andy

Rosebery_2

You should pay the invoice less the VAT amount and say in your covering letter that as their Quotation did not say that VAT would be added then it was reasonable to assume that the quote included VAT or that the company were not registered for VAT. Say you look forward to hearing from them in relation to this matter.

Of course its quite possible that the company has previously traded below the VAT threshold but has now reached that point (which they should have forseen when quoting) in which case they are obliged to pay VAT to the Govenment on all transactions. They do not have a choice.

Might be a good idea to check with your CAB.

Does the Invoice have their VAT reg number on it? If not they've probably broken the law somewhere.

a_star_3

If the quote was + VAT they should have provided that breakdown in the quote. If they accounted for VAT and it was not shown on the quotation they are just trying to scrape that bit extra on the job.

Either way, get them to provide you with an invoice showing their VAT reg no. If they don'y have 1 they are breaking the law and you should contact trading standards.

Technically they can charge their VAT cost but it has to be within the given price and not broken down, (in this case there is no need to talk of VAT at all, as far as you are concerned it's a cash price), unless it's a mutual agreement and they are going to backdate that invoice with a VAT breakdown at a later date.

If they are registered, it could be an honest mistake, as Liam pointed out, in which case they should have atleast informed you.

dwarvenassassin

It is afaik an offense to show VAT as a seperate item on an invoice unless you are VAT registered.
If you are VAT registered, you are required to show your VAT Reg. No.

Call HMRC and see what they say.