Agreed Quote work started demanded more money

Fruityoranges

I recently accepted a quote for my tarmac and lawn front garden to be changed to a resin driveway. I had to transfer money into the owner’s private bank account as he said he doesn’t “take tick”. Accepted quote and work commenced following week. First day of job when lawn and tarmac removed was told he needed considerably more money as ground was too hard for the resin and needed to have two lots of hardcore installed.  Was angry but garden a mess but had to accept.  Another few thousand put into his private bank account. He agreed final payment on completion. Job completed but then said his accountant told him to charge me VAT, so had to pay final amount plus VAT. The whole job has cost more than double the quote and I don’t believe I should be charged VAT on money paid into a private bank account. He is coming round later to discuss with me. I am a widow and pensioner and feel like I have been fleeced. Quite scared to meet him later as on my own. Any advice please? 

MeteredOut

Do you have an invoice from him with a VAT number on it? Do not do anything until he can produce this, and you can check the VAT number is legitimate (https://www.gov.uk/check-uk-vat-number)

Can you get a friend/neighbour to be there when he visits? Do not let him intimidate you into paying any more. I'd even consider refusing to speak to him until he's produce the full invoice with VAT.

Even if he does produce a valid VAT number, I'd strongly oppose to paying him as his lack of administrative knowledge is his problem, not yours, and you approved the work on the basis of his quote (which presumable did not say +VAT). 

Voyager2002

Do you have any evidence that this business is registered for VAT?

And has the work been completed to your satisfaction?

Fruityoranges

Work has been completed and driveway is lovely.  He won’t produce any receipts I phoned one of the suppliers asking for details of what was delivered to my property and how it was paid for.  Refused to give me that information and an hour later the driveway guy phoned me asking why I had phoned one of the suppliers.  His business is VAT registered but I have not paid the company only paid into his personal bank account.  The document handed over to me stated “contract/invoice” and no VAT shown just quote which has since gone up by more than 100%. As a private person he is not VAT registered which by me having to pay VAT to him is illegal.  Thank you for your comments, much appreciated.

sheslookinhot

Sadly, I think you are being taken advantage of. He is putting the money through his personnel account to hide his vat obligations and the fact you are an elderly lady. The fact that price has doubled reinforces this. No reputable contractor or business owner would countenance this level of chicanery. Unfortunately the deed is done. 

I would be reporting him, but can understand your reluctance.

Have you asked about a guarantee /warranty ?

Fruityoranges

He has written on the quote guaranteed for 10 years, which isn’t worth the paper it’s written on.  I checked out his company and reviews and were all positive so really upset he seems to have targeted me, no doubt my age and being on my own was good enough for him.  When he comes round later was tempted to say that him charging me VAT is illegal and would report him to HMRC but that could cause me harm!!! 

Albermarle

Maybe tell him that you discussed it with a friend and they are going to phone the VAT office for clarification about paying into private bank accounts etc.
I think then he might hop it quite quickly !

Fruityoranges

Was tempted to say that!!

saajan_12

The bank account used isn't dispositive about whether VAT is due or not. 

However I think your better bet is to state the quote was assumed to be inclusive of VAT, given you are a consumer and it didn't say it was excluding VAT. 

MyRealNameToo

Whilst it is highly unorthodox for a legitimate company to have money paid directly into a directors/shareholders personal account it is irrelevant to if VAT is due or not. 

It could certainly hint at them intending to misreport their revenue but it doesnt prove that they are. I certainly have known some trades that asked customers to pay the full monies due into their Howdens or Travis Perkins trade account, not for tax dodging but because they've overspent and have a big bill coming. Not talking about those trying to keep materials off the book to avoid VAT registration. 

You can report your concerns to HMRC via gov.uk/report-tax-fraud but as your guarantee isnt insurance backed they may guess who it is and may not be too responsive if there are future problems. 

Fruityoranges

I have just looked at the first contract/invoice quoting the price.  The paperwork shows the company’s VAT number.  However the second document he gave me when job was completed does not show the VAT number on it but he has written in biro VAT to be added, surely this isn’t legal?