Can he add vat after quote?

adolphin1

We got a couple of verbal quotes for re-pointing work for a gable-end, one builder said £1000 to start a month later, the other said £1050, to start the following Tuesday.
We opted and agreed verbally with the £1050. He has now gave us a bill for £1233.75. We are a bit in shock, as we are now £183.75 short for his work. Can he do this? when he gave his quote, he didn't mention he had to add his vat, we just assumed it was in his price.

nordberg

He's trying it on.... Remind him that you, as a private individual, are not VAT registered.....

keystone

nordberg wrote: »

He's trying it on

Possibly. The convention is that if any written quotation does not specifically state that VAT is to be added or that it is included then it should be automatically assumed that it is included and not chargeable after the event. The problem here is that there is nothing in writing it seems which leaves contractor and client way out on a limb because it could so easily descend into a "you said I said" argument. So my position would be, on the basis of information provided, that VAT should NOT be added to the final bill if it was not mentioned previously.

.... Remind him that you, as a private individual, are not VAT registered.....

Irrelevant I'm afraid. Its not a matter of whether the OP is registered its a matter of whether the contractor is registered or his business turnover level has reached the point where he needs to register. But then thats the contractors problem not the client.

Cheers

McKneff

It had nothing to do with the OP not being VAT registered, they are an end user and therefore pay VAT.

You should never, ever rely on verbal quotes. Was it a quote or an estimate? big difference, which is why you need things in writing.
First of all, look at the invoice, if he is VAT registered there should be a VAT number on there.
He really should have told you plus VAT, legal wise I dont really know where you stand.

Most builders quote ex VAT but being in the building trade I know that automatically, lots of people dont.

Im sure the legal aspect will be explained by further posters.

Good luck.

keystone

McKneff wrote: »

He really should have told you plus VAT, legal wise I dont really know where you stand.

If its not stated its assumed to be included. If it got to court with a written quotation (which should have included his VAT number unless one hasn't been issued yet) on that basis OP would win. Problem here, as you so rightly say, is there is nothing in writing.

The VAT threshold on turnover for 2010 is £70k and if he goes over that he has to pay VAT to HMG on every single penny. Its the contractors obligation to deal with this not his clients. If he knows he has to remit VAT but didn't tell his client that it was to be added then thats his tough luck. The client should not suffer financially because he can't run his biz properly. Just my 2c.

Cheers

adolphin1

Well just rang him, stating his bill was a bit of a shock, not expecting the extra VAT. He said he'd said at the start, his word against ours it seems, having nothing in writing, Damn, we always get it wrong!! Thanks to all, but a lesson to everyone else, ALWAYS GET IT IN WRITING!!
THANK YOU AGAIN ALL

keystone

If he claims he mentioned it then I guess you prolly have to pay as you can't prove otherwise.

Do you have a properly numbered invoice showing the VAT and including his VAT number?

Cheers

adolphin1

keystone wrote: »

If he claims he mentioned it then I guess you prolly have to pay as you can't prove otherwise.

Do you have a properly numbered invoice showing the VAT and including his VAT number?

Cheers

Well, the letter does include a VAT and Company No at the bottom of the page. What's annoying is that, when we first asked him, he'd said between £850 and £1050, the following day when we'd asked him to confirm a price and when he could start, that's when he said £1050 all in, scaffolding, materials, labour and he'd start on the Tuesday, so we said ok. I guess we assumed then that was the total price and that's what we budgeted for, Ah well, you live and learn, all the time with us, we'll get there one day.....maybe!

keystone

adolphin1 wrote: »

...............when he said £1050 all in..........

If I was being picky and I were you I'd be saying "all in" means exactly that - no extras. I'd also be asking myself if its a coincidence that £ 1050 - 17½% isn't that far off £ 850 but then thats just me. Only you can decide if its worth the inevitable hassle.

Cheers

ormus

generally business to business sales never include VAT. whilst businesses selling to private consumers/end users do include the VAT.
but its not a legal rule, just a general practice/rule.

end consumers should always make sure they know what is the final/total price payable.

darkblue_2

It may be that he's trying it on, but you don't really have a case unless you want to take your custom elsewhere. The fact you're not VAT registered isn't important, as stated, because businesses simply collect VAT on behalf of HMRC and so it's not his money - it's the government's. But the fact he was ambiguous about the quote shows how important to get it in writing is.