Should I being paying VAT at 17.5%?

Goodjob

Im having some work done on my house which started 3 weeks ago. I signed up for the work back in October - prior to the VAT drop - and paid a deposit.

I have recieved my final bill and they have charged me 15% VAT on the balance not the full amount. ie they are charging me 17.5% VAT on the deposit. The difference is a few hundred pounds so Im keen to make a saving in possible.

Any thoughts?

Thanks

Caroline73_2

They would have to pay VAT up until the changes, so if you paid the deposit in October it would have gone through their books in October so need 17.5 % VAT I'mafraid.

tyllwyd

One thing surprised me though - you say the work started three weeks ago, and you already have the final bill. Is it a substantial job? If it was me, I'd be reluctant to pay the whole thing in one go just in case. If it is a big job, I'd be more inclined to negotiate payment in several stages, with the final payment on completion. If you pay them the entire amount up front, there is a lot less pressure on them to finish if things don't go entirely to plan.

Johnhowell

They have charged the VAT correctly. Payments before 1 December 2008 = 17.5%, payments after 1 December 2008 = 15%

John

Goodjob

The work is finishing today so they are only getting the final payment once the items on my snag list have been completed.

tyllwyd

Goodjob wrote: »

The work is finishing today so they are only getting the final payment once the items on my snag list have been completed.

That makes sense! I was assuming it was a longer job.