Tradesman not supplying invoice / receipt with my name on

mcplumb

If you are a business, why not employ a business to carry out work on your projects..... I guess they looked cheaper?

theoretica

Your accountant would presumably know what is needed - maybe it would be acceptable if the tradesman endorsed the receipt in his name that it had been paid directly by you.

OrlandoBoom

mcplumb said:

If you are a business, why not employ a business to carry out work on your projects..... I guess they looked cheaper?

My "business" is my rental property, for which I need invoice or receipts for. I employed this tradesman / business to carry out the work. What is the point you are trying to make ? I did do as you say, I employed a business to carry out work for my business. Rather odd comment from you ?

OrlandoBoom

mcplumb said:

If you are a business, why not employ a business to carry out work on your projects..... I guess they looked cheaper?

Also, he was not the cheapest, but I needed the work doing in time for a new tenant moving in, after the previous one moving out, and he fitted the availability criteria, so again you assumptions are wide of the mark

OrlandoBoom

Sarahspangles said:

To evade tax, he’d want your cash, and not the paperwork (order/receipt), as that is the paper trail HMRC can use in evidence if he’s trying to avoid registering for VAT.

It’s more likely he’s trying to avoid the cash flow problem of buying materials upfront that he can’t immediately invoice you for.

Where are the materials? You ideally need something in writing from him to say you have title, in case he is in financial difficulty.

It's for a rental property. It's essential work that needs carrying out after an EICR report. So, I need to put the cost of repairs against my tax return. So I need an invoice or receipt to show that I paid for the work to be done

Doozergirl

OrlandoBoom said:

Sarahspangles said:

To evade tax, he’d want your cash, and not the paperwork (order/receipt), as that is the paper trail HMRC can use in evidence if he’s trying to avoid registering for VAT.

It’s more likely he’s trying to avoid the cash flow problem of buying materials upfront that he can’t immediately invoice you for.

Where are the materials? You ideally need something in writing from him to say you have title, in case he is in financial difficulty.

It's for a rental property. It's essential work that needs carrying out after an EICR report. So, I need to put the cost of repairs against my tax return. So I need an invoice or receipt to show that I paid for the work to be done

So the tradesperson writes you a handwritten receipt for the full amount of the goods, but the VAT line disappears and is incorporated into the gross amount.  

No way are they VAT registered if they can't issue an invoice/receipt.  

Do it yourself and get them to sign it, whatever.  

And don't pay directly without sight of an invoice in future.  

ThisIsWeird

OrlandoBoom said:

Sarahspangles said:

To evade tax, he’d want your cash, and not the paperwork (order/receipt), as that is the paper trail HMRC can use in evidence if he’s trying to avoid registering for VAT.

It’s more likely he’s trying to avoid the cash flow problem of buying materials upfront that he can’t immediately invoice you for.

Where are the materials? You ideally need something in writing from him to say you have title, in case he is in financial difficulty.

It's for a rental property. It's essential work that needs carrying out after an EICR report. So, I need to put the cost of repairs against my tax return. So I need an invoice or receipt to show that I paid for the work to be done

Would it work if the 'reference' on the invoices/receipts named the property in question?
On a different note, I thought that only improvements to a property which increased its overall value, could be set against your tax bill? Eg, typically things like building extensions, garages, driveways, and not just repairs and maintenance?

Bookworm105

OrlandoBoom said:

mcplumb said:

If you are a business, why not employ a business to carry out work on your projects..... I guess they looked cheaper?

My "business" is my rental property, for which I need invoice or receipts for. I employed this tradesman / business to carry out the work. What is the point you are trying to make ? I did do as you say, I employed a business to carry out work for my business. Rather odd comment from you ?

using the word "business" just confuses the issue. Is your property owned by a Ltd company you own or do you own the property in your own name?

if your Ltd co has paid the materials invoice addressed to another trading activity then yes, that is technically not the debt of your Ltd.
HOWEVER, it is not unusual to have a tradesman ask for material purchases to be settled directly as it keeps the cost off their books. The objective being to keep their turnover below the VAT threshold. Nothing illegal about that (actually quite common) provided they don't claim the cost anyway (that would be fraud, but you'll never know what is in their books) and the supplier uses the name of the person who ordered the goods, not the person when creating the invoice. that is the correct treatment from their perspective as what matters to them is who is labile if it is not paid, rather than who actually pays it. Also as mentioned obviously it counts towards tradesman's discount levels so ordered in their name. .

if you do not have a Ltd, then there is nothing stopping you claiming the cost against your rental income even with a bill in another name as your payment is demonstrably linked to the work you are having done and your bank statement proves the payment. One hopes you have something in writing outlining the works: written order? formal contract?

Bookworm105

ThisIsWeird said:

On a different note, I thought that only improvements to a property which increased its overall value, could be set against your tax bill? Eg, typically things like building extensions, garages, driveways, and not just repairs and maintenance?

OP said repairs, what in that statement makes you assume it is capital?
OP is taking about his rental profits, they will be net of "just" repairs and maintenance/
OP is not talking about CGT liability  

ThisIsWeird

Bookworm105 said:

ThisIsWeird said:

On a different note, I thought that only improvements to a property which increased its overall value, could be set against your tax bill? Eg, typically things like building extensions, garages, driveways, and not just repairs and maintenance?

OP said repairs, what in that statement makes you assume it is capital?
OP is taking about his rental profits, they will be net of "just" repairs and maintenance/
OP is not talking about CGT liability  

Good point - well made :-)