Where do I stand? VAT

pineappletree23

Hi
Complete newbie here. Sorry if I’ve posted in the wrong place. 

I contracted a tradesman (sole trader) to do a lot of home improvement work last year and small extension. 

It’s been a nightmare getting the work done. It’s only half complete and unable to get an answer when it will be finished. 

He’s been paid up to date but now he’s trying to get me to pay vat (which is substantial). The invoice doesn’t have vat included and I never agreed to a cost plus vat. 

Do I need to pay this? I haven’t factored this in and it’s come as a surprise. I can’t afford the rest of the work if I have to pay this. 

Thanks 

eskbanker

pineappletree23 said:

The invoice doesn’t have vat included and I never agreed to a cost plus vat. 

VAT-registered businesses have to satisfy a range of obligations, including specifying it clearly on invoices, together with the businesses VAT registration number, so it sounds like he's failing on various fronts - was VAT mentioned at all on the estimate/quote?

macman

Why is he asking you to pay an amount that's not included on the invoice?
Did you not ask at the outset if he was VAT-registered?

pineappletree23

Hi thanks for the reply. 

No I didn’t ask. 

The invoices do not have any reference to vat or a vat registration. 

It gives the price as all inclusive and then a breakdown of payments as and when certain work is completed. 

That’s it!

Aylesbury_Duck

The short answer is that he shouldn't retrospectively tell you that what you've paid to date is exclusive of VAT and that you now need to add it.  The problem you have is the work being half complete and the affordability of the rest of the work if he changes his pricing for it.  

What do you have in the contract?  Do you have legal expenses cover on your home insurance?  This could get messy, so it would be helpful to get some proper legal advice.

pineappletree23

Thank you. I did think this would be the case sadly. 

The ‘contract’ is a fixed price quote for all the work with the payment stages for completion of works. Unfortunately there’s no timescales on there or the vat bit. Things I now realise in hindsight are important. 

Agreements outside of this quote were made verbally and some in messages. 

I’ll look at the legal cover, that’s a good point thank you 

sheramber

Is .he charging VAT on the previously paid money or only on the unpaid amounts?

Could he have had to register for VAT recently, due to increase in turnover?

Ask him for his VAT number to check he is registered for VAT.

Flight3287462

Just ask him for his VAT registration number and tell him you are going to check it with HMRC.  Assuming he is not VAT registered that should put a stop to his nonsense straightaway.  (If he is VAT registered that may make things a bit trickier)

outtatune

Flight3287462 said:

Just ask him for his VAT registration number and tell him you are going to check it with HMRC.  Assuming he is not VAT registered that should put a stop to his nonsense straightaway.  (If he is VAT registered that may make things a bit trickier)

Why would it make things trickier? He's provided the OP with a quote. All quotes to consumers must be VAT inclusive. That is the amount the OP should pay, and no more. If the trader needs to account to HMRC for VAT, whether for all of the work or just some of it, that is his problem and of no concern to the OP.

pinkshoes

pineappletree23 said:

The ‘contract’ is a fixed price quote for all the work with the payment stages for completion of works. Unfortunately there’s no timescales on there or the vat bit. Things I now realise in hindsight are important. 

Agreements outside of this quote were made verbally and some in messages. 

I’ll look at the legal cover, that’s a good point thank you 

Quotes to consumers need to include VAT, so you owe him exactly what he has quoted.

https://www.asa.org.uk/static/uploaded/adac9dec-45de-4bfe-90a1194ba10ad1d2.pdf

I would write to him thanking him for his additional invoice, but pointing out that the agreed quote was £X to complete the job, which was comparable to other quotes that included VAT (did you get more than 1 quote??) so you will not be paying any additional amount.

I would then ask for a timescale of when the outstanding work will be completed.

Keep it very polite.

ThumbRemote

macman said:

Why is he asking you to pay an amount that's not included on the invoice?
Did you not ask at the outset if he was VAT-registered?

Why on earth would they ask if the trader was VAT registered? It's of no concern of the customers. 

You wouldn't ask if a tradesman had any illnesses that might affect their work, what their credit limit was with their suppliers, whether they had van breakdown cover, who they banked with, or any of a myriad other questions that are none of your business.