Builders invoice

[Homeowner with a question]

I've received an invoice from a builder that has 20% added. I queried and it has been confirmed that this is not VAT (they are not VAT registered) but it is a 20% tax that they pay at the end of the year. Is this common practice in the building trade so that I know for the future?

 

[The Happy Builder]

No

 

[techie]

Lol

 

[HarryL1234]

What @The Happy Builder says.

 

[Mark DM]

No chance.... add it to the joke thread

 

[Astramax]

Can it be back dated? If so I'm owed a fortune! along with other tradespeople on here.

 

[Astramax]

What @The Happy Builder says.

...and what he doesn't say ^€¥&÷=/.

 

[Sparkielev]

I think he may be onto something here, my next invoice will include my full tax bill

 

[Astramax]

I've received an invoice from a builder that has 20% added. I queried and it has been confirmed that this is not VAT (they are not VAT registered) but it is a 20% tax that they pay at the end of the year. Is this common practice in the building trade so that I know for the future?

It's called income tax after personal allowance has been deducted in this instance also known as B/S as this is a strange way of collecting their tax liability.

 

[FlyByNight]

Pay the actual amount and not the 20% with reference to the original quotation.

If they then get stroppy say you will ask HMRC to investigate it and comment - they wont't but is a good start. Then let them try a small claims court action against you - you have proof of a quote which you have paid.


I wonder how many other customers fall for it and pay up?

 

[kitfit1]

I've received an invoice from a builder that has 20% added. I queried and it has been confirmed that this is not VAT (they are not VAT registered) but it is a 20% tax that they pay at the end of the year. Is this common practice in the building trade so that I know for the future?

Did you perhaps agree to pay in cash but then decide to pay by cheque or bank transfer in the end

 

[Homeowner with a question]

Did you perhaps agree to pay in cash but then decide to pay by cheque or bank transfer in the end

No it was always bank transfer

 

[BuildingMad]

What was the wording in the quotation.

 

[Homeowner with a question]

Pay the actual amount and not the 20% with reference to the original quotation.

If they then get stroppy say you will ask HMRC to investigate it and comment - they wont't but is a good start. Then let them try a small claims court action against you - you have proof of a quote which you have paid.


I wonder how many other customers fall for it and pay up?

Thank you. I asked my accountant and he said that it was possible CIS tax, but that doesn't usually apply to jobs in people's homes.Why can't people just be honest

 

[Homeowner with a question]

What was the wording in the quotation.

It just said : Tax 20.00%
No mention of what the tax was. I queried if it was VAT but he said no, it was just a tax he had to pay??

 

[Homeowner with a question]

It's called income tax after personal allowance has been deducted in this instance also known as B/S as this is a strange way of collecting their tax liability.

I know right. I'm going to try it!!

 

[FlyByNight]

Thank you. I asked my accountant and he said that it was possible CIS tax, but that doesn't usually apply to jobs in people's homes.Why can't people just be honest

CIS Tax?

Even that would be dodgy. That is a deduction he makes from payments to sub-cons ... https://www.gov.uk/what-you-must-do-as-a-cis-subcontractor/get-paid

 

[BuildingMad]

It just said : Tax 20.00%
No mention of what the tax was. I queried if it was VAT but he said no, it was just a tax he had to pay??

Please clarify.
Are you actually saying you queried it at the written quotation stage, but still accepted the quotation ?

 

[Homeowner with a question]

Please clarify.
Are you actually saying you queried it at the written quotation stage, but still accepted the quotation ?

I did ask for a written quotation. But he gave me an estimated verbal one. If I had just persisted and got the written quotation I wouldn’t be in this situation. Lesson learnt.

 

[Homeowner with a question]

CIS Tax?

Even that would be dodgy. That is a deduction he makes from payments to sub-cons ... https://www.gov.uk/what-you-must-do-as-a-cis-subcontractor/get-paid

Thanks for the link Yeah he saw me coming.