Clients asking for copies of materials invoices

Discussion in 'Electricians' Talk' started by peter palmer, Jan 22, 2020.

  1. sparko69

    sparko69 Screwfix Select

    Agree totally but apparently there's a new rule that says there is no guarantee if you didn't personally purchase the materials. Pahahaha
     
  2. peter palmer

    peter palmer Screwfix Select

    I just don't get it, if you give the invoice to the client, what are you supposed to use to claim against your turnover come tax return time? If you charge £100 for labour and £50 for a light that is £150 turnover, if you have a receipt for £50 then the profit is £100 so you pay £20 tax. If you don't have any invoices or receipts because you've given them away then your supposed profit is still £150 so you pay £30 tax, so purchasing that light yourself has actually cost you £60, £10 more than the client has paid for it, that is total and utter madness in anyone's book.
     
  3. sparko69

    sparko69 Screwfix Select

    You must be familiar with the concept of electronic receipts and invoices via e mails? You don't even need to give the client the original just a copy will suffice.
    Next question....
     
  4. Heat

    Heat Screwfix Select

    Your business invoice is the evidence of warranty for the parts you supply.
    That is also why you need an ‘insurance’ of extra percent on materials.
    The customer didn’t purchase the item from a store, - they paid you for it and you are responsible for it.
    Your warranty is legally with your merchant, Screwfix, whatever.
     
  5. terrymac

    terrymac Screwfix Select

    On the contrary . My suppliers and the prices I pay to them for their products are no one else's business ,and such information is confidential. Any contract between my business and my client is just that. If they have a problem with what I supply they take it up with me , and in turn ,I can take issue with my supplier. They have no contract whatsoever with my supplier and no entitlement to visibility of any invoices or correspondence between me and my supplier
     
    jayktee and Joe the Plumber like this.
  6. sparko69

    sparko69 Screwfix Select

    The customer is fully entitled to a copy of the purchase receipt
    Bit of a long winded way to make a few extra quid but each to their own
     
  7. Heat

    Heat Screwfix Select

    Agree, my invoices are confidential.
    Not only do they show the discount I get, they also allow the customer and anyone else they might deliberately or carelessly allow to view it.
    What do you do with your personal invoices? Do you leave copies lying around, perhaps just throw some in your bin? Or do you shred any copies?
    Yet we are to assume we just give our personal papers to customers to do what they wish
     
  8. sparko69

    sparko69 Screwfix Select

    I just ask the wholesaler I use for an invoice for the materials for the client which doesn't contain my personal information it contains their name and address...it works for me but I'm not trying to make extra on the materials
    And when I get materials for a job I don't consider them to be my personal property...again because I'm not trying to sell them on
     
  9. Heat

    Heat Screwfix Select

    Customer has got their purchase receipt, - it is your invoice to them.
    Check that out, - I purchased and installed a shower for a customer and months later it failed under warranty. My invoice to customer was proof of purchase.

    If we are to follow the rule that customers must have material invoices from source, then when a window company supplied and installed your windows you could insist on invoice from wherever they bought the window frames and invoice from glass company.
     
    Joe the Plumber likes this.
  10. terrymac

    terrymac Screwfix Select

    They are not entitled legally or morally to a copy of any of my purchase invoices.

    As for being long winded ,if it makes profit ,then long winded sounds good to me .
     
  11. sparko69

    sparko69 Screwfix Select

    if you have got something to hide then it's in your favour to with hold the invoices .
    The client is fully LEGALLY entitled to a copy of the original invoice because many businesses insist on seeing the original invoice to process repairs or replacement. It's not rocket science just common sense.
     
  12. sparko69

    sparko69 Screwfix Select

    When you are bumping up the price of materials it probably seems like a good idea...until someone insists on getting a copy of the purchase invoice
    Plus acting shady about purchase invoices would guarantee you won't get any more work from that source so its probably a false economy trying to be too clever for a few extra quid
     
  13. Heat

    Heat Screwfix Select

    That would be fine if you get invoices in customers name.
    But that just means you are doing the shopping for your customer, - and free perhaps.
    Just be careful doing that and reaching customer invoice from another company as that can appear you are personally being paid money, which in reality was just you being repaid. This is risky where cash payment is done. Witnesses could say you were paid £ XXX from your customer (despite no gain for you)
     
  14. peter palmer

    peter palmer Screwfix Select

    Lets go back to fuel receipts, I put £50 of fuel in my Van and do some sub-contracting work to another firm, I invoice them for £550 and give them the fuel receipt that they demand. When its tax return time I'm going to say quite rightly my profit was £500 for that job and pay tax accordingly, if I say my profit was £550 then I would have to pay an extra £10 tax on the fuel, so far so good.

    Now what do you think the other company are going to do with that fuel receipt? they are obviously going to claim the vat back on it, and they are alo going to off-set the rest of it against their profits, this is despite them off-setting my invoice for the full £550 as well. It would be tax fraud plain and simple, the same £50 fuel receipt is being used to claim the tax 3 times, but it goes on all the while, greedy firms making easy money off the little guy.

    Obviously its not the same scenario for private customers but if Joe bloggs was to walk into CEF and buy a consumer unit he would have to pay £300 or £400 for it. If I walk in I could buy it for £100 because for years I've bored myself senseless talking ***** to sales reps and watched endless presentations on crappy drill bits and luminous magnetic coathangers; drunk endless cups of rancid soup with big lumps in the bottom, all to generate good will and cheap prices, so why should Jo Bloggs benefit from all my finest work? What was all those 7AM mornings at wholesalers for if it wasn't for me to make any money?
     
  15. sparko69

    sparko69 Screwfix Select

     
  16. Astramax

    Astramax Super Member

    Client does not need to know your merchants price .
     
  17. sparko69

    sparko69 Screwfix Select

    You don't need to do anything for free,many legitimate businesses charge 25% carriage charge on materials but the big difference is they are up front about it and don't try to sneakily charge you...hence no reluctance to give you your invoice
     
  18. terrymac

    terrymac Screwfix Select

    LEGALLY , what act of parliament do you think attributes that right ? Please advise so we can point out where you are misinterperating it. They are entitled to an invoice from the company that they are contracting with,and no other.
     
  19. Heat

    Heat Screwfix Select

    Good example that proves everything is if you buy a new car from a car dealer.
    Let us say the dealership then closed down later.
    Your car later gives trouble just within warranty.
    Your invoice from the dealership is still proof of purchase and warranty.
    No need of invoice from car manufacturer to original dealership
     
  20. peter palmer

    peter palmer Screwfix Select

    Its sounds bizzarre doesn't it, you cant make a purchase at a wholesalers, lets say £1000 out of you business account and get the invoice made out in someone else's name and then get £1000 paid back to you from the customer, how would you word you invoice for the £1000? sounds like a slippery slope to a tax investigation to me.
     

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