VAT added onto final invoice

janoid19

I'm after advice please. We have had some work done at our house which included taking 2 load bearing walls down, installing steels, installing a new kitchen etc. We went with a builder who dealt with everything and sent an email quote for the work split into 4 parts to be paid in stages.

Stripping out old kitchen, taking walls down, installing steels - £5,188 (paid)

Opening up wall for patio doors and building stud wall for utility - £3,770 (paid)

Kitchen Fit - £2500

Electrics £2880

This quote was sent in an email. We paid as we went along and have paid the first and second phase payments. The job has been going on for months now and my husband had a falling out with the builder at the weekend when ringing to see when they would be coming back. After this falling out, the builder sent a message to tell us what payments were outstanding. Again the electrics were £2880. We told the builder we would get in touch with the electrician to pay him directly and get that sorted. The electrician has now sent an invoice for the payment which is £2880 + VAT so around £3450(ish). We did not budget for this and all the other phase payments have been what was quoted.

Do we have to pay the amount plus VAT even though this was never quoted or mentioned by the builder?

Jumblebumble

No

You are a consumer and all quotes to consumers have to have VAT included

You simply tell the electrician you were quoted £2880 , you are not interested in the VAT breakdown and that is what you will be paying and there is nothing they can do about it.

eskbanker

Perhaps a coincidence, but £2880 would be a round £2400 plus VAT?

I think the situation may be complicated by the fact that you don't have a direct contractual relationship with the electrician, who will have quoted a B2B cost (to the builder) rather than a B2C one (to OP), but has the electrical work all been completed satisfactorily, as this will strengthen your hand considerably?

janoid19

https://forums.moneysavingexpert.com/discussion/comment/82116698#Comment_82116698

Most of the electrical work has been done satisfactorily. There is a few cabinet lights to be fitted and outdoor lights.

Due to the breakdown in relationship with the builder (who are adding costs on that weren't discussed but thats a different matter) we let the builder know we would pay the electrician directly so we knew they had been paid.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82116714#Comment_82116714

Yes, I understand why you're choosing to pay the spark directly but in itself that may not address the VAT issue - have you raised it with them yet and if so, with what outcome?

Aylesbury_Duck

I think you've been generous in offering to pay the electrician and it's backfired. I would pay the builder the sum agreed for the electrical work, making it very clear that the payment is for the electrical work. Whatever happens between the builder and the electrician is between them, not for you to worry about. You had a quote, inclusive of VAT, and a contract for the work with the builder. He's subbed it out, but you still pay him because that's who your contract is with.

janoid19

https://forums.moneysavingexpert.com/discussion/comment/82116725#Comment_82116725

Not yet, I only received the invoice yesterday and wasn't sure if I had to pay it as I've never come across this situation before.

Usually with other trades it either has said price + vat from the start or just a price which I have paid.

Okell

@janoid19 - "… After this falling out, the builder sent a message to tell us what payments were outstanding. Again the electrics were £2880. We told the builder we would get in touch with the electrician to pay him directly and get that sorted. The electrician has now sent an invoice for the payment which is £2880 + VAT so around £3450(ish)…"

I think you've complicated matters by going directly to the electrician.

Had he already completed his work when you decided to do this?

Why did you do it? It's not your problem whether or not the builder pays an electrician he's sub-contracted. You just needed to pay the builder.

When you contacted the electrician directly, did you explain to him that you were only paying what the builder had quoted - ie total of £2880 VAT inclusive?

Okell

https://forums.moneysavingexpert.com/discussion/comment/82116693#Comment_82116693

AIUI the electrician never gave the OP a quote.

When the OP contacted the electrician directly he should have explained that he was only going to pay the £2880 incl VAT quoted by the builder. (And of course the electrician may not have accepted that).

The OP should just have paid the builder as per the original quote

janoid19

https://forums.moneysavingexpert.com/discussion/comment/82116730#Comment_82116730

Thanks for this, it looks like we have. I didn't even think about VAT as it hadn't been mentioned anywhere in the pricing up to that point.

He had also replaced the fuse board for us and so when I contacted him I asked for him to send the invoice for the fuse board and a copy of the quote for kitchen electrics

UKTaxHelper

VAT turned up because you stepped into the middle. Electrician to builder, if both are VAT registered, is reverse charged so nothing shows on it. Electrician straight to you is a normal supply and he has to add it. Pay the builder instead.