VAT on builders quotes

DanDare999

TrixA said:

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

So they've not got that much work on or a list of customers wanting them. 

Dazed_and_C0nfused

A non-refundabke deposit of £8,000 is a risk.

What if they said on the first afternoon the relationship (with you the client) had irretrievably broken down and they walked off the job.

That's your £8k gone irrespective of what they have spent/done.

onomatopoeia99

If the quote is to a consumer rather than a business then the quote must include VAT if payable, but does not have to state that it does.  A lot of businesses don't seem to realise that consumers don't think in VAT exclusive prices. B2B quotes that are nett of VAT must state the VAT rate that will be charged.

A quote states what you will pay.  If they quote £100 and invoice for £120, then you pay the £100, wave their quote at them and point out fraud is a criminal offence.

macman

Their VAT no. should be shown on the letterhead. Unless of course they're doing one job a year at £80k and so under the VAT threshold...

the_lunatic_is_in_my_head

A deposit is rarely non-refundable, the trader would have to show they suffered that in costs or loss of profits, which have they'd have to lessen, the hard part is clawing the money back if anything goes wrong. 

In any event I wouldn't be happy handing over £8k as a "deposit". OP have the builders said anything about building control sign off on the loft conversion?

prowla

macman said:

Their VAT no. should be shown on the letterhead. Unless of course they're doing one job a year at £80k and so under the VAT threshold...

That!

Also, what is their insurance cover like?

shiraz99

macman said:

Their VAT no. should be shown on the letterhead. Unless of course they're doing one job a year at £80k and so under the VAT threshold...

There is no legal requirement for the VAT reg number to be displayed on someone's letterhead, it's quite possible they may not even have a letterhead. The VAT number is only required on invoices and certain receipts, it certainly isn't required on quotes, although it is good practice to do so.

DanDare999

shiraz99 said:

macman said:

Their VAT no. should be shown on the letterhead. Unless of course they're doing one job a year at £80k and so under the VAT threshold...

There is no legal requirement for the VAT reg number to be displayed on someone's letterhead, it's quite possible they may not even have a letterhead. The VAT number is only required on invoices and certain receipts, it certainly isn't required on quotes, although it is good practice to do so.

Even if the OP isn't VAT registered?

shiraz99

DanDare999 said:

shiraz99 said:

macman said:

Their VAT no. should be shown on the letterhead. Unless of course they're doing one job a year at £80k and so under the VAT threshold...

There is no legal requirement for the VAT reg number to be displayed on someone's letterhead, it's quite possible they may not even have a letterhead. The VAT number is only required on invoices and certain receipts, it certainly isn't required on quotes, although it is good practice to do so.

Even if the OP isn't VAT registered?

Yes, if you're charging VAT then you have to display your VAT reg no on the invoice regardless of whether the recipient is themselves VAT registered or not.

TrixA

I can't imagine they're under the VAT threshold, so the question is simply whether they've included VAT and haven't made that clear, or whether they've assumed we know there will be an additional VAT charge to pay. Obviously we need to ask them but I just can't understand why they'd be coy about it. It may be the case that they can't legally charge more than was quoted but obviously we'd prefer to avoid a legal dispute.

The quote came electronically and there is no letterhead as such, just a company logo.