Builder didn't include VAT on Invoice

LondonPepper

Roofer did some work which turned out be to be bad in the end and had to be fixed by another roofer. But invoice was paid at the time as we aren't experts and from what he showed us it looked ok. There was no mention of VAT on the invoice just a total for the work, no vat number. A year later he is now messaging asking for the 20% VAT to be paid on that invoice. What can/should we do?

DullGreyGuy

How much was the original quote? Was it clear if that was inclusive or exclusive of VAT?
How much was the invoice for?

If you had a quote for £500 + VAT or £600 inc VAT but only were sent an invoice for £500 with no reference to VAT then the merchant would still be well within the 6 years of the statute of limitations to make the claim for the shortfall.

If they said it was £500 all in and you paid an invoice for £500 then they can go whistle. 

user1977

Was he registered for VAT at the time? What had you agreed to pay?

born_again

LondonPepper said:

Roofer did some work which turned out be to be bad in the end and had to be fixed by another roofer. But invoice was paid at the time as we aren't experts and from what he showed us it looked ok. There was no mention of VAT on the invoice just a total for the work, no vat number. A year later he is now messaging asking for the 20% VAT to be paid on that invoice. What can/should we do?

Ignoring the VAT.

Did you claim against the 1st roofer for poor work & having to get a 2nd in to fix?

LondonPepper

DullGreyGuy said:

How much was the original quote? Was it clear if that was inclusive or exclusive of VAT?
How much was the invoice for?

If you had a quote for £500 + VAT or £600 inc VAT but only were sent an invoice for £500 with no reference to VAT then the merchant would still be well within the 6 years of the statute of limitations to make the claim for the shortfall.

If they said it was £500 all in and you paid an invoice for £500 then they can go whistle. 

total quote was with no mention of VAT, just the figure and same with the invoice 

the_lunatic_is_in_my_head

LondonPepper said:

Roofer did some work which turned out be to be bad in the end and had to be fixed by another roofer. But invoice was paid at the time as we aren't experts and from what he showed us it looked ok. There was no mention of VAT on the invoice just a total for the work, no vat number. A year later he is now messaging asking for the 20% VAT to be paid on that invoice. What can/should we do?

Ask him if he is high? 

I assume you didn't get any money back from the first guy for the second roofer's fix? 

Tell him you paid the amount requested and VAT should have been included on the estimate/quote and final bill. 

Advise hm separate of his issue about VAT that the work he did was to a poor standard and cost £x with another roofer to be performed in accordance to the contract and as he didn't carry out the service with reasonable care and skill you are seeking a price reduction of £x which he has 14 days to pay. 

Hopefully that would be the last you hear   

LondonPepper

born_again said:

LondonPepper said:

Roofer did some work which turned out be to be bad in the end and had to be fixed by another roofer. But invoice was paid at the time as we aren't experts and from what he showed us it looked ok. There was no mention of VAT on the invoice just a total for the work, no vat number. A year later he is now messaging asking for the 20% VAT to be paid on that invoice. What can/should we do?

Ignoring the VAT.

Did you claim against the 1st roofer for poor work & having to get a 2nd in to fix?

He denied it was anything to do with them. In fact I think they did damage on purpose to charge us more later down the line

LondonPepper

the_lunatic_is_in_my_head said:

LondonPepper said:

Roofer did some work which turned out be to be bad in the end and had to be fixed by another roofer. But invoice was paid at the time as we aren't experts and from what he showed us it looked ok. There was no mention of VAT on the invoice just a total for the work, no vat number. A year later he is now messaging asking for the 20% VAT to be paid on that invoice. What can/should we do?

Ask him if he is high? 

I assume you didn't get any money back from the first guy for the second roofer's fix? 

Tell him you paid the amount requested and VAT should have been included on the estimate/quote and final bill. 

Advise hm separate of his issue about VAT that the work he did was to a poor standard and cost £x with another roofer to be performed in accordance to the contract and as he didn't carry out the service with reasonable care and skill you are seeking a price reduction of £x which he has 14 days to pay. 

Hopefully that would be the last you hear   

unfortunately not, i'm just ignoring him for now

DullGreyGuy

LondonPepper said:

DullGreyGuy said:

How much was the original quote? Was it clear if that was inclusive or exclusive of VAT?
How much was the invoice for?

If you had a quote for £500 + VAT or £600 inc VAT but only were sent an invoice for £500 with no reference to VAT then the merchant would still be well within the 6 years of the statute of limitations to make the claim for the shortfall.

If they said it was £500 all in and you paid an invoice for £500 then they can go whistle. 

total quote was with no mention of VAT, just the figure and same with the invoice 

To the best of my knowledge all pricing presented to consumers should include VAT by default or at a minimum make it abundantly clear that VAT is to be added. 

If they were moot on VAT then what they quoted was an all in price be that all in with no vat because they arent vat registered or all in inclusive of VAT because they are VAT registered. 

LondonPepper

DullGreyGuy said:

LondonPepper said:

DullGreyGuy said:

How much was the original quote? Was it clear if that was inclusive or exclusive of VAT?
How much was the invoice for?

If you had a quote for £500 + VAT or £600 inc VAT but only were sent an invoice for £500 with no reference to VAT then the merchant would still be well within the 6 years of the statute of limitations to make the claim for the shortfall.

If they said it was £500 all in and you paid an invoice for £500 then they can go whistle. 

total quote was with no mention of VAT, just the figure and same with the invoice 

To the best of my knowledge all pricing presented to consumers should include VAT by default or at a minimum make it abundantly clear that VAT is to be added. 

If they were moot on VAT then what they quoted was an all in price be that all in with no vat because they arent vat registered or all in inclusive of VAT because they are VAT registered. 

ok thank you. That's what we thought but wanted to see others opinions in case we were mistaken 

Exodi

DullGreyGuy said:

LondonPepper said:

DullGreyGuy said:

How much was the original quote? Was it clear if that was inclusive or exclusive of VAT?
How much was the invoice for?

If you had a quote for £500 + VAT or £600 inc VAT but only were sent an invoice for £500 with no reference to VAT then the merchant would still be well within the 6 years of the statute of limitations to make the claim for the shortfall.

If they said it was £500 all in and you paid an invoice for £500 then they can go whistle. 

total quote was with no mention of VAT, just the figure and same with the invoice 

To the best of my knowledge all pricing presented to consumers should include VAT by default or at a minimum make it abundantly clear that VAT is to be added. 

If they were moot on VAT then what they quoted was an all in price be that all in with no vat because they arent vat registered or all in inclusive of VAT because they are VAT registered. 

Yes you're right:

Value Added Tax

(i) Price indications to consumers

2.2.7.  All price indications you give to private consumers, by whatever means, should include VAT.

(ii) Price indications to business customers

2.2.8.  Prices may be indicated exclusive of VAT at an outlet or through advertisements from which most of your business is with business customers. If you also conduct business at that outlet or through these advertisements with consumers, however, you should make it clear that the prices exclude VAT and you should—

(a)display VAT inclusive prices with equal prominence; or

(b)display prominent statements that the quoted prices exclude VAT and state the appropriate rate. It should be noted that VAT inclusive prices for all goods offered by traders to consumers are required by the Price Marking Order 2004(8) (further information can be obtained from your local Trading Standards Service).

https://www.legislation.gov.uk/uksi/2005/2705/made?view=plain

Generally all prices provided to consumers (as opposed to businesses) should include VAT. In fact, by chance, the gov.uk page actually specifically cites builders in their example:

Invoices from suppliers like builders, painters and decorators must show a separate amount for VAT and their VAT registration number.

https://www.gov.uk/tax-on-shopping/where-you-see-vat

I think we have been given half the story though, and I think born_again clocked on to it also.

It's a tad coincidental that the OP notices a fault with a builders work and then independently the builder notices they forgot to charge VAT.

Could we hazard a guess that the OP and the first builder had a conversation before this, and that this was their response?

Builders dodging VAT obligations is as old as the hills. Though I am surprised they're the ones drawing attention to it, considering they are the ones obligated to collect and pay the correct tax. The OP might be minded to let HMRC know that this builder has seemingly 'forgot' to pay VAT on their past jobs - you have at least one example.

It is not a consumers responsibility to ensure VAT is being paid out of the price - unless the builder reasonably believed the OP was a business, and even then they should have stated the price was ex VAT.