Company's VAT lapsed?

DontWorryAboutItPal

Hi! We got an invoice from a tradesman (apparently VAT-registered, but their VAT number doesn't check out on the 'Check a UK VAT number' page on gov.uk.

They've sent me a HMRC letter dated April this year and entitled "VAT notice of assessment" as extra proof, but the VAT number is the same as the invoice.

I'd quite like to be sure they're VAT-registered before I fork out for the extra £400 they've charged me on top of the agreed price for the work.

Is it possible their VAT registration has lapsed? If so, do I still have to pay them the VAT? I'd obviously like to save the money, but don't want to risk legal action.

Potential compromise: pay them the base amount for now (sans VAT) and then add the VAT on afterwards if they can prove they were VAT-registered this entire time?

Thanks for any insights!

la531983

DontWorryAboutItPal said:

Is it possible their VAT registration has lapsed? If so, do I still have to pay them the VAT? I'd obviously like to save the money, but don't want to risk legal action.

What legal action? Their tax affairs are their own business, there is no comeback on you. They may not want to do the work for you anyway if you arent willing to pay them that £400.

Phoenix72

They may have been de-registered by HMRC, or de-registered themselves.

Ask the company to produce a current VAT certificate from their HMRC account.

DontWorryAboutItPal

la531983 said:

What legal action? Their tax affairs are their own business, there is no comeback on you. They may not want to do the work for you anyway if you arent willing to pay them that £400.

They've already done the work, so I know we owe them at least the base cost, if that makes sense.

la531983

In which case pay them £2000 pending proof they are VAT registered, they can hardly kick up a fuss about it and take you through small claims if they arent and the invoice specifically says the missing £400 is VAT.

uknick

You owe them the total price you agreed for the work.  How can you not pay this price unless the work is not to standard?  Were the other traders you got quotes from cheaper because they weren't VAT registered?  If so why use this trader?

If you think they're fiddling their VAT, report them and let the authorities sort it out.

Grumpy_chap

DontWorryAboutItPal said:

Hi! We got an invoice from a tradesman (apparently VAT-registered, but their VAT number doesn't check out on the 'Check a UK VAT number' page on gov.uk.

They've sent me a HMRC letter dated April this year and entitled "VAT notice of assessment" as extra proof, but the VAT number is the same as the invoice.

I'd quite like to be sure they're VAT-registered before I fork out for the extra £400 they've charged me on top of the agreed price for the work.

Is it possible their VAT registration has lapsed? If so, do I still have to pay them the VAT? I'd obviously like to save the money, but don't want to risk legal action.

Potential compromise: pay them the base amount for now (sans VAT) and then add the VAT on afterwards if they can prove they were VAT-registered this entire time?

Thanks for any insights!

Is this work being done for you as a consumer?
My understanding is that quotes for services to consumers should be "all in" when quoted and clear, so either £2,000 or £2,400 or "£2,000 + VAT" but, however it is presented, the total cost should be clear to you from the quote.

Did they quote you £2,000 and are now adding the VAT?
OR, did they originally quote "£2,000 + VAT" or £2,400?

DontWorryAboutItPal

uknick said:

You owe them the total price you agreed for the work.  How can you not pay this price unless the work is not to standard?  Were the other traders you got quotes from cheaper because they weren't VAT registered?  If so why use this trader?

If you think they're fiddling their VAT, report them and let the authorities sort it out.

Good question - we never got the quote in advance, so there's nothing really to now disagree with, I suppose. 

DontWorryAboutItPal

Grumpy_chap said:

Is this work being done for you as a consumer?
My understanding is that quotes for services to consumers should be "all in" when quoted and clear, so either £2,000 or £2,400 or "£2,000 + VAT" but, however it is presented, the total cost should be clear to you from the quote.

Did they quote you £2,000 and are now adding the VAT?
OR, did they originally quote "£2,000 + VAT" or £2,400?

(as above, @Grumpy_chap) - we were never quoted anything, so we just got the invoice when it came through.

Grumpy_chap

DontWorryAboutItPal said:

we were never quoted anything,

I am not sure that is consistent with the first post:

DontWorryAboutItPal said:

I fork out for the extra £400 they've charged me on top of the agreed price for the work.

How did you have an "agreed price for the work" if you never had a quote?

OR, do you mean the work was done and then the tradesperson said it was £2,000 + VAT?

flaneurs_lobster

"Hello Tradesperson, please do some work for me. When you're done just let me know how much you want paying"

said nobody, ever.