Who should cheque be paid to ?

tdubya

We've just had some work done on a new flat for my mother-in-law which is been done by a reputable builder that is a limited company. They also do quite a bit of work for a large housing association in the area I live. Work has been done to a very good standard and short space of time.

I've asked for an invoice for the work which he has emailed to me which is fine at £5,000 plus VAT, totalling £6,000 ish. No problem with this amount but here's the rub..

Instead of asking for the cheque to be made payable to the company, he has asked for the trip to be made payable to his wife. The email invoice doesn't quote a VAT number. We've asked for a proper invoice on headed paper which presumably will show the vat registration number.

I'm sorry but I'm suspecting that the Vat will never see the light of the taxman' books. I don't like paying tax anymore than anyone else, but paying vat for it to end up in a person's own pocket rather than where it's should be going doesn't seem right.

Who should the cheque be made payable to ?

PlutoinCapricorn

It may not just be the VAT that doesn't get declared, but the main amount too.

Did you ask why the cheque should be made out to his wife? You are entitled to a proper invoice.

maninthestreet

He isn't a reputable builder if he is trying to avoid paying tax.
Politely tell him that as his wife didn't do the work, you won't be paying her.

PlutoinCapricorn

I am not sure whether or not you would be guilty of anything if you did make the cheque out to his wife and HMRC investigated his affairs and discovered the payment, but I would not like to take this chance.

JethroUK

maninthestreet wrote: »

He isn't a reputable builder if he is trying to avoid paying tax.
Politely tell him that as his wife didn't do the work, you won't be paying her.

He's actually entitled to get paid however the fork he wants

If I were the builder and was challenged I would not accept a cheq at all but instead demand cash

Then give it to my wife

Or a donkey farm in Austria

aggypanthus

He wants to pay into her account, why? He is hiding it from his business account.

JethroUK

aggypanthus wrote: »

He wants to pay into her account, why? He is hiding it from his business account.

It his money and his business what he does with it
What part of this are you guys not getting
He is not POLICING your money and you should not POLICE his money just because you can

27col

It's absolutely none of your business how he wants to be paid. Just so long as you get a signed receipt for the money.

Alias_Omega

I suspect someone here is wanting a VAT discount...

phill99

I'm a builder and can assure that he us coning you out if the VAT.. He will pay it into his wifes account and not declare it, as sure as God made little apples. His wife wont be registered for VAT so they will be better off by best part of £1000.

He's committing an act of fraud and you are party to it.

Make the cheque iut to his company name as this is the entity that you contracted with to undertake the work, not members of his family.

zagfles

If he's charging you VAT, then demand a VAT receipt. He can't know whether some of that VAT might be reclaimable by you (for instance if you work at home you might be able to get expenses from your employer, for which you'd need a VAT receipt).

I had some cheeky ex BT engineer (now working for himself) do some phone wiring in my house many years ago, this was for phone points needed for working at home. He quoted me £40 plus VAT. OK'ed with my boss.

He did the work but refused to give me a VAT receipt. I said he's not getting the VAT unless he gives me a VAT receipt, because I needed a VAT receipt to claim expenses. Eventually he admitted he wasn't VAT registered! So I paid him the £40, and no VAT. He whinged, but no way was I paying more than agreed, £40 plus VAT. Not VAT registered, therefore VAT is zero!!