Settlement Agreement for poor tradesman - VAT inclusive or exclusive?

professional_female

Hello MSE helpers. Long story short, i employed a tradesman to install heating in my home, lots of errors, false promises and shoddy workmanship later, i was not happy with how the project was progressing. I asked him to review his work so far and he was not interested in doing so (even to the extend of i had to pay someone else to fix his mistakes). I then gave him two choices; fix what he had done and adjust the price due to the hassles (i.e. begging to have heating over xmas) OR settle via an agreement and i'd get the work done elsewhere. Needless to say, he took the easy option of the latter. He agreed to the sum.  Now it is paid (circa £1400), he is saying i owe him the VAT. He didnt clarify at the time whether the "full and final settlement" in writing was including VAT and funnily enough, being a joe bloggs consumer, i dont run a business or operate under these terms so didnt mention it either. Given he has been unprofessional since the offset, made countless errors, mistakes on invoices etc and just generally avoidant of giving anyone but him a good service, where do i stand? I want this idiot out of my life. 

the_lunatic_is_in_my_head

All prices quoted for consumers should include VAT if applicable, I wouldn't pay any extra, especially in the circumstances. 

professional_female

Thanks - i proposed the settlement and he accepted in writing. In my eyes, he should have checked there and then if he has VAT liabilities.

Doozergirl

professional_female said:

Thanks - i proposed the settlement and he accepted in writing. In my eyes, he should have checked there and then if he has VAT liabilities.

If he's VAT registered then he always has VAT liabilities. 

The invoices MUST by law contain the VAT number and this can then be checked online.  

If there's no formal quotation or agreement with the VAT on then they are going to struggle to argue legally what was due.   

AskAsk

the_lunatic_is_in_my_head said:

All prices quoted for consumers should include VAT if applicable, I wouldn't pay any extra, especially in the circumstances. 

is this the law?  i got a dodgy roofer quote recently and then he added VAT on top when he sent me the written quote.  unfortunately i didn't ask him if the quote included VAT or not as i just assumed it did if he was VAT registered.

professional_female

The guy i used is VAT registered but the quote was just on email (may have included the VAT # but not a professional quote on headed 'paper' or anything). Invoices did have VAT on them but then they were often incorrect and all in all the whole situation is a joke. It appears most silent agreements imply the settlement is VAT inclusive unless said otherwise, from my research. (in other words, he sorts out what VAT he pays from the FULL and FINAL amount i offered - not asking for more because he forgot or assumed otherwise)

AskAsk

professional_female said:

The guy i used is VAT registered but the quote was just on email (may have included the VAT # but not a professional quote on headed 'paper' or anything). Invoices did have VAT on them but then they were often incorrect and all in all the whole situation is a joke. It appears most silent agreements imply the settlement is VAT inclusive unless said otherwise, from my research. (in other words, he sorts out what VAT he pays from the FULL and FINAL amount i offered - not asking for more because he forgot or assumed otherwise)

i would pay him £1,400 as agreed or not at all.  so give him the two options.  let him pick the option.  if he doesn't want to pick either, then don't pay at all and tell him to sue you if he wants and then a court can make an independent decision.

the_lunatic_is_in_my_head

AskAsk said:

the_lunatic_is_in_my_head said:

All prices quoted for consumers should include VAT if applicable, I wouldn't pay any extra, especially in the circumstances. 

is this the law?  i got a dodgy roofer quote recently and then he added VAT on top when he sent me the written quote.  unfortunately i didn't ask him if the quote included VAT or not as i just assumed it did if he was VAT registered.

It's covered under the The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 to provide certain information, including the cost inclusive of taxes. 

stragglebod

Tell him once that you've already paid him the agreed £1400 and that you won't be entering into any further discussion about it.

professional_female

Thanks all. I appreciate your comments and i told him this concluded the matter, no doubt i will be on the receiving end of a few sh**ty emails until he gives up.  What type of 55 year old man tries to repeatedly bully a female in their 30s when he didn't even make a good job of the initial work, nor take any accountability.  (shakes head)

stragglebod

One who thinks that the time invested in writing a few shrubbery emails is worth the possible chance it'll pay out £280. Prove him wrong