VAT on builders quotes

TrixA

We’ve had a quote for a loft conversion and some associated building works, it’s in the neighbourhood of £80k (we’re in London). The quote doesn’t mention VAT anywhere, should we be assuming it’s included or excluded? I was going to go back to the builders and ask them to clarify if VAT is included, but a friend has suggested they may deliberately not have mentioned VAT because they are hoping for payment in cash, and now I feel like it’s a potential minefield. 

They’ve also asked for a 10% non refundable deposit to book the job, is that normal?

Doozergirl

You need to be clarifying and you need not to be working for anyone that expects to take that amount of money 'cash'.  

Some take deposits, some don't, but I wouldn't be giving a penny if it was 'cash' as preparedness to rip off one party won't be limited to just one party.  

Just clarify.  

Andy_L

TrixA said:

We’ve had a quote for a loft conversion and some associated building works, it’s in the neighbourhood of £80k (we’re in London). The quote doesn’t mention VAT anywhere, should we be assuming it’s included or excluded? I was going to go back to the builders and ask them to clarify if VAT is included, but a friend has suggested they may deliberately not have mentioned VAT because they are hoping for payment in cash, and now I feel like it’s a potential minefield. 

They’ve also asked for a 10% non refundable deposit to book the job, is that normal?

You should:
1. Ask the builder 
2. Laugh at your friend - £80k cash payment!!

Getferret

Don’t assume anything.  Ask and get it in writing.  You will save yourself so much hassle if anything goes wrong.  Any good builder will not hesitate to confirm.

Builder remodelled my house 2 years ago, quote stated cost of work details/materials and VAT separately. I then added extra work, builder wrote on the quote the additional work costs including VAT however, when the final invoice was received he added VAT again on the additional work.

The total invoice was split more or less evenly over three invoices.  I did not pay a deposit.  First invoice received after week one of work, second invoice after week two, the final invoice upon completion.  Unfortunately for me between week 2 and final invoice the pandemic lockdowns started. Several problems occurred so I delayed payment of final invoice.  

comeandgo

How much due diligence have you done on the builders?  Are you able to ask any of their previous customers about their work?  The VAT should be included if you are not another company but to be absolutely sure ask them.  There is no way on earth I’d give a non refundable 10%.  

shiraz99

For an £80K quote I'd expect a full breakdown of works and payments incl. VAT.

TrixA

shiraz99 said:

For an £80K quote I'd expect a full breakdown of works and payments incl. VAT.

Yes there is a breakdown of works and payments, just no reference to VAT anywhere.

Clive_Woody

Assume nothing, this will avoid future debate and upset. When spending £80k you want to be fully clearing what is included. 

TrixA

comeandgo said:

How much due diligence have you done on the builders?  Are you able to ask any of their previous customers about their work?  The VAT should be included if you are not another company but to be absolutely sure ask them.  There is no way on earth I’d give a non refundable 10%.  

They seem pretty reputable, they’ve done a lot of work in the local area and when we asked if it would be possible to view a completed project they seemed fine with that.

If we were going to try to negotiate on the 10% non refundable, what do you think would be a reasonable counter offer? 

Doozergirl

It's the non-refundable bit I take issue with. 

There have to be some circumstances in which it should be.   I know some builders like to see commitment from the other party but I have never had a customer change mind, let alone one cause me to incur costs as a result.  

When is this work supposed to take place? 

TrixA

We haven’t agreed a start date yet, but hopefully before Christmas.