self employed builder quote

jimini0

hi everyone im looking for advice/confirmation.
im in the process of getting a stone wall built in front of my house.i have got 3 quotes. 2 from out of town guys and one local. i want to give the local man the job his price is good.
the only thing im confused about on his quote is the tax.
"he says he has to charge me 26% tax on top of the price" he has explained that he is selfemployed but not vat registered.
im confused about the tax rate a self employed person has to pay. 26% seems awful high to me????
can anyone confirm this as been the normal
thanks in advance

seamus

Sounds a bit like he's trying to pull a fast one tbh.

His tax is his business, not yours. Yes, he's paying income tax on it, but his final price is the price you pay, he doesn't slap on his income tax, and I suspect it's illegal to advertise/quote for business and then slap your own income tax on top of the quoted price.

Ask him for his final price after he puts on his own income tax. That's what you compare against the other two quotes.

jimini0

sorry didnt explain it properly. he was not pulling a fast one.
his final price was inclusive of the 26%. i just asked him why it was 26 which i thought was very high and he explained that was the rate he has to charge. i just wanted to ask people was that the proper rate he has to charge me to be all above board?

dahamsta

Like Seamus says, he's building income tax into the quote. It has no relevance to you, just compare the tax inclusive prices and any other factors necessary.

Mr. Incognito

That is not his final tax rate as he will be able to write off the cost of the materials etc,

his tax is his own affair. Companies don't charge you +VAT +Corp tax