Builder vat fraud

jimbo88_2

UPDATE: Email back from builder:
"I have spoken with HMRC today and i / they are looking into this ref the vat number worse case scenario i will have to re register and back date with them so at this present moment in time you are not required to pay vat untill if required i am issued with a new vat number but if this is the case then the vat will be payable."

Do you think he really is able to re-register??...and back date?...and then charge us afterwards for the backdate vat??

jimbo88_2

1984ReturnsForReal wrote: »

You do realise some of what you are doing could be seen as conspiring to defraud.

No- as I said we will report him, therefore I am not conspiring!!:)

1984ReturnsForReal_2

jimbo88 wrote: »

No- as I said we will report him, therefore I am not conspiring!!:)

You may find HMRC take a different view.

& by the way IF he turns over £67k (or £68k or whatever it is now) VAT is due whether he has a number or not.

& you will get a VAT bill when HMRC go after him, which they will. & you will have to pay it.

jimbo88_2

1984ReturnsForReal wrote: »

You may find HMRC take a different view.

& by the way IF he turns over £67k (or £68k or whatever it is now) VAT is due whether he has a number or not.

& you will get a VAT bill when HMRC go after him, which they will. & you will have to pay it.

Why would we get a vat bill if we reported him to the hmrc?....

I don't know whether turns over that amount or not- he is a soletrader who brings in other trades for help...either way, he should not be using an invalid vat number and charging us or anyone else with it.

arfurrrr

i would explain your issue with his vat number and ask him if this is the correct number for his business . explore further with his new vat number if he provides you with it . if not explain that you have spoken to hmrc and they are advising you not to pay any vat to an unregistered business .

if he is not vat registered , then any materials he has supplied you will include vat from the suppliers . for his labour he can not added vat if he an`it registered . therefore i would dispute the labour element only .

example vat reg firm .

bricks £100 + vat = £117.50
labour £100 + vat = £117.50

total £235 inc vat

example non vat reg firm

bricks £117.50
labour £100.00

TOTAL £217.50

jimbo88_2

And also if he puts the money into his gf's account, they wouldn't know anyway???

arfurrrr

ok so your have updated while i was typing .

HMRC , want vat , it is easy for them to reissue number and let him back date the payments . its less work for them and easy money rather than sending someone out to chase him , after all the are busy chasing all the football clubs for millions.

I`m vat registerd and have to complete a vat return every 3 months , so would your builder , i think he has been pulling your leg , he would have known about the vat situation months ago , that is if hes been going more than 3 months . He conned you and you have caught him with his pants down .

1984ReturnsForReal_2

jimbo88 wrote: »

Why would we get a vat bill if we reported him to the hmrc?....

I don't know whether turns over that amount or not- he is a soletrader who brings in other trades for help...either way, he should not be using an invalid vat number and charging us or anyone else with it.

Jimbo.

Just put the VAT money in the bank.

You were quoted VAT & Invoiced VAT & paid VAT.

You will not be allowed to benefit from his crimes.

I suggest you talk to someone who knows about Tax.

Just because you report a crime it doesn't make you exempt from paying tax to the Government.

macman

So basically you're agreeing to 'pay' the unjustified £3K extra by not seeking to recover the defrauded VAT already paid.
So he's still made at least £3K extra on this job.
And you'll have to employ someone else to finish it.

plumb1_2

Hung,drawn and quartered,already:eek:

There could be a simple explanation, have you asked him if the vat number is correct? printing error etc???
He has quoted you for a job, which you are happy with and agreed the price. So pay him.
The extras is different issue, you need to explain you are not happy about them if they where included in the original quote.
So i would carry on paying him including the vat and hold the last payment until the work is completed and you are happy with the end result.
Then report him if you wish,IF it is a false vat number.

Why do you want the Vat back? You would have to pay this to any other builder that is registered,by wanting it back you too are defrauding the revenue out of tax.Let the vat and tax man sort it out and you will have nothing to worry about.