Being offered 'cash price' what does this mean for me?

[lmk]

To cut a long story short, I want to use a certain plumber - - he has all qualifications - corgi, unvented system etc. We are having a total overhaul of heating system - megaflow installed - all new pipes - new boiler nearly 10K worth of work.

However, he has given me two prices a very expensive price which includes VAT and a better 'cash price.' I am concerned about accepting the 'cash price' and have told him I will still need a receipt and proper invoice detailing work being carried out but am concerned about public liability etc. What are the cons of doing a cash price? Does it have any comeback for me - ? Any advice greatly appreciated.

 

[Deleted member 105431]

cash is his way of avoiding vat, income tax, national insurance etc etc and is illegal. If either of you get caught expect a heavy fine and court appearance. Cash jobs have no comeback and no legal avenue to persue should there be a problem. Having said that cash jobs are very, very common.

 

[lmk]

Thought as much. We are totally prepared to pay VAT and are mostly concerned that if anything goes wrong we will not have any recourse.

Think we will decline his offer and go for a competitors - cheaper and all above board.

 

[namsag]

nonsense you have exactly the same rights with a cash job . It is only between the fitter and the taxman what should be paid to them.
He will still be insured etc etc etc

There is loads of businesses out there who advertise vat free days etc etc
but they still pay it , its can be a gimmick

 

[Deleted member 105431]

Thought as much. We are totally prepared to pay VAT and are mostly concerned that if anything goes wrong we will not have any recourse.

Think we will decline his offer and go for a competitors - cheaper and all above board.

that is certainly the safer option, cash jobs are ok for low value work but for 10k I'd want the peace of mind.

 

[lmk]

So now I'm confused.

 

[Deleted member 105431]

he has given me two prices a very expensive price which includes VAT and a better 'cash price.' .

if its all above board why does the cash price not include vat? Ask him for an invoice on the cash job and see what he says.

 

[gas4you]

Don't expect to get much saving for a cash job.

The VAT still has to be paid on all the materials somewhere along the line.

All you will save is the VAT on his labour.

Whatever way you go, you need a full receipt and written guarantee from him.

 

[kevplumb]

jeez listen to the preachers

none of which have ever done it ( my ass )

people in glass houses etc

 

[Axel]

Is it not the case that a plumber with a turnover less than 60k doe not need to be VAT registered, and so their customers don't need to pay VAT on the labour?

 

[TonyW2]

Cash job can avoid income tax etc payeable by any contractor.
The VAT element on the labour and profit can be avoided, if the contractor is VAT registered and if the contractor is taking the risk involved in submitting false accounting documentation, and, in both cases, is willing to pass some of the "saving" on to the customer
It may make the contractor able to meet the price offerable by a small contractor who works below the VAT threshold
However, if the VAT contractor is not "fiddling" the books, it becomes a marketing ploy only and is a complete illusion.
But if the books are being fiddled, then any receipts and evidence of having undertaken the work are likely to be a bit hazy.
Pay your money and take your choice!

PS Reluctance to accept a cheque may indicate potential bank problems, so .........buyer beware.

 

[namsag]

Well said kev.

Might also be the guys way of making sure he gets paid without the worry of a cheque bouncing etc etc.
And its what he would be charging anyway..
You should be picking someone who has come recommended or have seen thier work and know they are good irrespective of how they are asking to be paid.
But personally i don`t take a penny untill job is complete and there should be no need to pay anything up front

 

[Axel]

To cut a long story short, I want to use a certain plumber - - he has all qualifications - corgi, unvented system etc. We are having a total overhaul of heating system - megaflow installed - all new pipes - new boiler nearly 10K worth of work.

Can't be much more than 3k worth of materials...

7k of labour?

Hope he's around for at least a month!

blah blah his overheads etc...but still - you could train to be a CORGI plumber with unvented ticket for half of that!!!!

 

[bengasman]

If you have been offered a price reduction for a cashjob, than there will obviously be no receipt for it.
That does not prove he is a cowboy, but that he is aware that there has been an invasion of "polish plumbers" and he does not want to loose the job simply because somebody is happy to gamble on quality if the price is low.
I doubt that there is a single tradesman in the country who has religiously declared every single penny he has ever made.

Asking for cash payment these days does not mean it does not go in the books either. I have lost thousands of pounds in cheques and after it cost me over £3000 in a single year, I only take pound notes. I take pride in my work, and look after my customers who provide me with so many recommendations that I do not need to advertise. My customers get full warrantee up to 5 years, all paperwork done, receipts for every installment, but I make it very clear from the start that I do not accept anything else; pound notes only.

If you are getting an unvented cylinder, you need to verify that he is qualified to install those; it is not part of the "corgi-card"
An unvented cylinder also needs a minimum of 22 mm pipe above ground, and either copper 22 or (blue) plastic 25 mm under the floor,
all the way back to the streetvalve/watermeter. If there is so much as a single metre of 15 mm between the water meter and the cylinder, you might as well save a thousand pounds and get a combi.

 

[fitz1]

i am experienceing the problem of losing work to installers doing cash jobs.i am having to decrease in some instances the price of the job so as to carry on working.Problem is , i cant by nature lower the quality , therefore am struggling to gain any profit.In time quality of work will keep me going due to word of mouth and the amount of botch jobs being done. Ive just got to hope i can last the course.