Roofer Invoice Charging VAT but No VAT Number

MapleTrees

Hi everybody, I'm hoping somebody can help me figure out an invoice we have just received from our scaffolder.

In June we received a quote for scaffolding. The scaffolding was erected a few days ago. We have today received the invoice which is the same as the original quote from June, but this time it has VAT added separately. There is no VAT number on the invoice. The original quote had n/a in the VAT box.

The scaffolder has come back and said that he has to charge VAT because his accountant has told him he is now liable for VAT.

If his VAT application is pending can the tradesmen charge us VAT? I need to make sure everything is correct before shelling out another 20% (which we hadn't budgeted for). Advice would be greatly appreciated.

On-the-coast

“Pending” - probably yes legally (I’m not sure tbh). 

But the crucial thing is he quoted you the job as VAT n/a. 

His chance to rectify the situation was before he started the job (when he would have known about the change of circumstances at his end). 

Not to bump up the costs after installation was in place & you had no option to source other quotes. 

Don’t forget that VAT works to reduce his material costs too… anything he purchases to do your job he can now purchase VAT free so in these transitional cases it shouldn’t be a straight 20% increase unless every part of your job is labour. 

MapleTrees

Thank you very much for the reply. Just this moment he has come back with a fresh invoice containing the VAT number. We've looked it up and it does relate to his business. 

Since this is the scaffolder he probably owns all the scaffolding or hires it in, so probably nothing much by way of material costs. I'm not sure whether I should push back on this, as it was unexpected, but I doubt I'd get anywhere.

On-the-coast

Hire is still a material cost. But that’s outside of the main point - he increased his price *after* quoting and only told you after work was mostly complete. 

In your situation I would be extremely annoyed, and would be pushing back hard (unless he could cause more downstream costs to the rest of your project…)

FFHillbilly

technically you will be entitled to say "this is not what we agreed upon, take it down I don't want it anymore"
what they should have done is check that you were ok with the new VAT position first.
If you are not in a hurry for the works to be completed and confident you could find another non VAT registered scaffolder that will do the same job without the 20% VAT then try that?
or you might be able to meet somewhere in the middle with a bit of negotiation? and less hassle overall?

maisie_cat

As I understand it, if the work was completed prior to his registration there is no VAT due as the tax point is the earlier of completion and invoice date.
If the work is completed post registration but the quote was clearly excluding VAT then the VAT is payable

MapleTrees

Thanks everyone. The scaffolding went up two days ago and the roofing work commenced today.

I can't find a date for when his VAT status was registered but in all likelihood it will have been before the work commenced. We didn't know the position changed and 20% is an awful lot more money to come up with, which we hadn't budgeted for.

It would indeed have been much better if he had forewarned us. He had plenty of time to do so because the instruction was given after receiving and accepting his quote in June, but as with most roofers we had to wait a couple of months to get a slot. I'll put it to him that hitting us with the price increase now isn't in our budget, and see what he comes back with. He's got us over a barrel as the scaffolding is up.

Risteard

maisie_cat said:

As I understand it, if the work was completed prior to his registration there is no VAT due as the tax point is the earlier of completion and invoice date.
If the work is completed post registration but the quote was clearly excluding VAT then the VAT is payable

VAT liability will be at the prevailing rate at the date of invoice.

grumbler

Risteard said:

maisie_cat said:

As I understand it, if the work was completed prior to his registration there is no VAT due as the tax point is the earlier of completion and invoice date.
If the work is completed post registration but the quote was clearly excluding VAT then the VAT is payable

VAT liability will be at the prevailing rate at the date of invoice.

VAT liability is the liability of the tradesperson. Non-business customers don't care about VAT and don't need to care. What they care about is the total amount they were quoted originally and agreed to. If the liability arose after the quote, but before the invoice, it's not the customer's problem.

benson1980

MapleTrees said:

Thanks everyone. The scaffolding went up two days ago and the roofing work commenced today.

I can't find a date for when his VAT status was registered but in all likelihood it will have been before the work commenced. We didn't know the position changed and 20% is an awful lot more money to come up with, which we hadn't budgeted for.

It would indeed have been much better if he had forewarned us. He had plenty of time to do so because the instruction was given after receiving and accepting his quote in June, but as with most roofers we had to wait a couple of months to get a slot. I'll put it to him that hitting us with the price increase now isn't in our budget, and see what he comes back with. He's got us over a barrel as the scaffolding is up.

I’m not sure I’d view the situation as one where the scaffolder has you over a barrel. They’ve completed the works (aside from removal of their scaffolding once roofing work done) and they haven’t been paid.

The quote is binding and if there is risk of incurring VAT, that is for the contractor to make clear. Based on what you have said they haven’t done this.

I’d recommend simply stating that you are paying the quoted price. Can’t compute why anyone would consider doing anything other than this to be honest.

ashe

Arguable as his scaff has the rig up you have him over more of a barrel as he will want paying either way and it's not your issue if you're backing out because of a 1/5th increase in price