Builder doesn't want me to pay vat

InsulateMeDaddy

Hi there,

Had some work done on the house. Builder implied he would like cash and I was ok with it but then said I might as well pay vat, why would he care.

After the work was done, he was a bit in a fluster when I said I wanted to pay vat. He said is work is guaranteed and he would issue an invoice but thought we'd arranged cash so was quite insistent.

Is this a red flag or am I being paranoid? I admittedly know little about how vat would effect him.

Thanks in advance

Allinall

Why do you “want to pay VAT”?

Just pay him what he wants for the job.

His VAT affairs are just that. His.

highdef

I'm with @Allinall - your builder is giving you figure X as the cost but you want to pay figure X plus Y. In other words, you wish to pay more than he is requesting. I really can't see why anyone would desire to pay more for anything than is being asked.

L1011

https://www.boards.ie/discussion/comment/121156061#Comment_121156061

VAT receipts are needed for any grant aid of any kind - renovation schemes, disability adaption and so on. Common enough reason to need them.

highdef

https://www.boards.ie/discussion/comment/121156067#Comment_121156067

That's true but surely if a builder is charging a price of 10k for a job, then the customer just needs to pay that amount. What the builder does in terms of paying taxes is up to the builder. It's nothing to do with the customer nor is the business of the customer as to how someone else's tax affairs are dealt with.

L1011

https://www.boards.ie/discussion/comment/121156115#Comment_121156115

Rather you have that argument (with a builder who pulls the "that was a cash price" thing at the very end) than I!

InsulateMeDaddy

I was thinking it was more of a guarantee of his work, that if it was shite I would have the proof of him doing it.

Also if a tree fell through the roof, I would have some form of proof to the insurance company that iv been upkeeping an old roof.

If his invoice is good enough for these types of things, I am happy enough.

Im a new homeowner so I just want to cross the t's.

Happy if it's a ridiculous question

kirving

A "cash" job rarely if ever means that the supplier just want's cash instead of a bank transfer. It means "off the books", entirely.

Good luck to the OP getting any warranty, grants, or certifications from the builder if they pay cash. There will be no recourse for the OP, only revenge (in the form of reporting him to Revenue, with evidence) if there are problems down the line.

13.5% is a small price to pay to keep everything above board.