How should I pay tradesmen over £5000?

Munkee2

I'm having a new roof next week to the value of £5500. I am worried for the following reasons:

1. They have asked for payment by bank transfer but as far as I know, this gives me zero protection if something goes wrong

2. What if the company goes under during installation? Unlikely but still possible

3. My parents have offered to 'gift' me the money to have the work done.

4. I'm on ESA due to having several medical conditions (hoping to be in work very soon) - do I have to inform the DWP that this 'gift' is going via my bank account or would it be easier for my parents to pay directly, via cheque if the company will accept it, even though my parents live in France? I do NOT want to dodge tax or anything similar. If I need to inform the DWP, I won't hesitate!

Many thanks for any advice.

Mojisola

Why are you paying upfront for the work?

Munkee2

Mojisola wrote: »

Why are you paying upfront for the work?

I'm not, and I didn't say I was. The company haven't asked for a penny yet.

Mojisola

Munkee2 wrote: »

1. They have asked for payment by bank transfer but as far as I know, this gives me zero protection if something goes wrong

2. What if the company goes under during installation? Unlikely but still possible

Munkee2 wrote: »

I'm not, and I didn't say I was. The company haven't asked for a penny yet.

So questions 1 and 2 aren't a problem.

Munkee2

Mojisola wrote: »

So questions 1 and 2 aren't a problem.

Unfortunately new rooves aren't free. I will have to pay them at some point, almost certainly when the work is completed, so yes point 1 is still a problem.

missile

Why? You have a record of the transaction.

You could and should ask for a written quote and a receipt.

Payment by cheque would not give you any more protection for items 1 & 2.

AFIK, 3 & 4 are not an issue.

Munkee2

missile wrote: »

Why? You have a record of the transaction.

You should and should ask for a written quote and a receipt.

Payment by cheque would not give you any protection for items 1 & 2.

AFIK, 3 & 4 are not an issue.

Thanks Missile. How should I be paying a tradesman for this sum of money? I don't have a credit card either.

missile

You can pay by bank transfer (BACS) on completion as your builder has requested. Double check his account details, as it can be extremely difficult to recover money if there is an error in the account details.

I would advise against any payment before work commences.

A credit card may give you some protection, but I doubt your builder would be happy to accept this.

Please be careful. I hope you have selected a reliable tradesman? Roofers have a (well earned) bad reputation for conning people into work which may not be required and shoddy workmanship.

phoebe1989seb

A word of warning about paying a tradesperson by bank transfer........

Friends recently had a new roof and paid the roofer in stages by bank transfer. Everything went fine till the final payment of around £5k, when the roofer announced his account had been hacked and the payment had been intercepted by a third party.

He actually became quite nasty, threatening my friend till she cried, caved and had to borrow the cash from family to pay him. Not sure where they're at now, but last I heard the bank wasn't interested.

Being the sceptic that I am, I can't help but wonder if the roofer was scamming them himself

We've paid a few trades by bank transfer in the past, but think I'd have second thoughts from now on.

gt568

I've paid all my tradesmen via bank transfer in the past, can't say it ever caused a problem! Plumbers, tilers, and electricians.

moneyistooshorttomention

Its very odd to have a workman demanding bank transfer as payment.

No workman has ever asked me for that. They've usually, quite obviously, expected a cheque from me. There are areas of the country where a substantial proportion of workmen want cash.....

But - bank transfer - nah! That's not something the ordinary person does imo and I've never paid anyone by bank transfer in my life - or heard of anyone else doing so. It's only cropped up, as far as I can recall, when it came to the legal executive doing the paperwork on buying current house using that. I've had a couple of firms over the years do a bank transfer to me.

Householders dont do bank transfers in my experience.