Extractor fans fitted cash or with VAT?

Bisoy

Hello fellow MSErs,

We have extractor fans fitted in our bathroom and kitchen about a few weeks ago. The electrician said that if we pay in cash its about £450 but with VAT is £499.

What are the advantages of paying with VAT as oppose to paying cash apart from the discount that I'll get?

Any tips much appreciated.

mancitychick

I am presuming by cash he means he will do the job on "the side" and not declare it through his books. Therefore saving you both some money. £450 plus vat is £528.75, so not sure where £499 comes into it. If you will still get a receipt (obviously a non-vat receipt) from him and an electrical safety cert than I don't see how you can get into any bother. No other advantages other than the discount that I can think of.

Bisoy

Sorry I wasn't very clear. The actual quote for the job was £425 so with VAT £499. But he said if it is cash he'll accept £450. I haven't asked if it was a non-vat receipt and would also issue an electrical safety certificate.
Will give him a ring to clarify. thank you for your reply.

benood

He's trying it on - he's planning to save income tax and half the VAT which doesn't seem a fair trade, let alone legal. If you are going to do a dodgy deal with him you shouldn't pay more than the £425, obviously the rest of society would prefer you to pay the VAT - but having said that I could see your tradesman just pocketing the whole lot anyway from the sound of him.

Bisoy

I would try my best (although might not be always) to have any kind of transaction legal, fair and square. I also do understand that he's doing it to avoid paying income tax. This website has thought me moneysaving tips but for the right reasons.

I have thought of a certain scenario hopefully you guys give me some enlightenment or perhaps also to other users on this site. Let's say for example I have strucked a deal with him for the job for £425 and with no receipt and probably no electrical safety certificate then an accident happened such as fire due to the faulty extractor fans. My question is, will I be covered with my home insurance if some sort of incident happened and proving after investigation that it was cause by a faulty extractor fans? and on the otherhand what if I've done the right thing pay the full price with VAT with safety certificate then also eg. caught with fire due to the extractor fans, will he have some liability for it?

I am sorry if it is such a daft question but don't have any idea as to what are the consequences on such actions.

Once again would appreciate any response.

mancitychick

Personally I would accept the £425 price as if the guy is going to fiddle his tax, that is him breaking the law not me BUT only if I was to receive the safety cert. Apart from anything you could need such certificates if you were to sell your house.

Receipt wise, I guess you would only need this if a problem arose with his workmanship and you wanted to take it further, court etc.

Re your insurance question, I don't have an answer to that i'm afraid.

robby-01

Bisoy wrote: »

Hello fellow MSErs,

We have extractor fans fitted in our bathroom and kitchen about a few weeks ago. The electrician said that if we pay in cash its about £450 but with VAT is £499.

What are the advantages of paying with VAT as oppose to paying cash apart from the discount that I'll get?

Any tips much appreciated.

What sort of fans did you have fitted for that money

Debt_Free_Chick

He is not necessarily trying to fiddle income tax or VAT - it's quite legitimate to pay any bill in cash. He may simply be giving a discount on the job if paid by cash e.g. pay by cheque and the bill is £425 + VAT (total £499.38) pay by cash and the bill is £382.98 + VAT (total £450.00). Until one sees the bill, it's not possible to know whether he is trying to fiddle anything at all.

Some tradesmen like the convenience of cash, especially if they employ others. They can use the cash you give them to pay their employees' wages.

I agree with robby-01 though - at either price, that's one helluva fan!! What's the cost of the fan & separately, the labour?