builder adding VAT after work completed

xMonsoonx

The work we needed doing has been finished and to a very high standard.

I did the usal and got 3 or 4 quotes detailing all work and total prices and selected a builder base on quote and first impressions and booked my choosen builder in for the job. He wasn't the heapest or the most expensive.

While on the phone i confirmed the total price and a few other bits like colours for some of the materials.

They came and did the job (all really nice guys) and i tried to give them the building society cheque i drew out the day before - practically every penny i owned! But the said to send to send it when i got the confirmation documents in the post.

Confirmation docs arrived yesterday morning and hes added VAT to the total price we agreed.

Can he do this?

LandyAndy

Assuming he was doing work to an existing property then VAT is chargeable. The question is whether he quoted you net of VAT and you were aware of this. Generally it would be expected that he would quote including VAT unless he stated otherwise.

What did it say in respect of VAT on his quotation for the work?

I assume you are an individual and not a VAT registered business.

Ask him for his VAT number and check its validity with HMRC.

xMonsoonx

yes i am an individual, this quote says total next to the price, but on his confirmation it says sub total next to the same figure.

I'm sure i read somewhere a couple of years ago that a trader cannot quote an individual a price that doesn't inculd VAT, has this changed?

frank.hopper

No traders don't have to include VAT, builders and plumbers merchants do it all the time-to name a few. Your builder has been a bit sneeky and you havn't clocked it. I wouldn't like to argue it in court, that word SUB could be a problem . How much is the VAT?

dander

Any kind of builder/plumber I've ever dealt with has always stated whether they are quoting including or excluding VAT. It's safe to assume that you will always have to pay VAT on these things and make sure you know at the outset whether the VAT is going to be an additional charge.

However, if there has been absolutely no mention of it until now, I would have thought the waters are muddied. You accepted his written quote, and if it doesn't say " +VAT" on there anywhere I would think it's reasonable to believe that the quote given included all taxes. If there is mention of "+VAT" even if the actual sum sin't mentioned, then you don't have a leg to stand on.

I'd suggest phoning Consumer Direct and talking the situation through with them.

JasonLVC

If the original quote doesn't mention VAT, then VAT is deemed to be inclusive within the price.

The legislation generally expects a business which trades with an individual to quote "VAT Inclusive" prices and so it is not a huge assumption to make that if a builder quotes you £x then that is the price agreed.

I suppose it is possible that in the time he quoted and the time he completed the job that he has exceeded the VAT registration threshold and has been forced to register for VAT. If that is the case, then both parties should negotiate a fair and reasonable settlement (ie, go halves). I'd expect to see VAT number clearly shown on all the paperwork and if needs be, ask the builder when he became VAT registered in order to confirm if this is what has happened.

Personally, I'd argue that the original quote still stands. If VAT was expressly excluded then this should have been made clear on the quote (after all, the quote is the formation of the contract) and if the builder has had to register for VAT, then that's his problem.

keith969

I had this with a removals company - they sent me an email quote that did not mention VAT. On the day they asked for VAT as well - I argued that they had given me a quote and they should stick to what was agreed. Which after some grumbling they did.

villabadger

I agree with Jason.....

His invoice must display his VAT number - lots of companies include it within their standard letterhead as well. Was his number included on the quotation? If so, then I would assume that his price is inclusive of VAT if he hasn't specifically stated otherwise.

If he was going through the process to register (he would be fully aware of when he was getting close to the threshold) then he should have notified you of possible VAT charges on the quotation. It was his screw up and now his problem - don't pay above the quoted price!

1984ReturnsForReal_2

villabadger wrote: »

I agree with Jason.....

His invoice must display his VAT number - lots of companies include it within their standard letterhead as well. Was his number included on the quotation? If so, then I would assume that his price is inclusive of VAT if he hasn't specifically stated otherwise.

If he was going through the process to register (he would be fully aware of when he was getting close to the threshold) then he should have notified you of possible VAT charges on the quotation. It was his screw up and now his problem - don't pay above the quoted price!

Its a legal requirement so all VAT registered companies have to display it on their paperwork.

Alan_M_2

This is difficult to call without sight of the original quote and how it was presented.

The fact the original quote declared the amount as a "Sub total" is an indication.

It is a legal requirement for advertised retail prices to include VAT or at least an inclusive price clearly visible in the case of trade wholesalers, but this only applies to retail sales, not quoted/estimated work.

Although it should be made clear in the interested of clarity.

Scan the document, remove anything that identifies you or the builder and you'll get a better answer to where you stand.

villabadger

1984ReturnsForReal wrote: »

Its a legal requirement so all VAT registered companies have to display it on their paperwork.

Only on their invoices. I asked specifically regarding the letterhead as then it would be clear whether the builder was VAT registered at the time of submitting the quote, in which case I would take their quoted price as inclusive of VAT.