Cash or invoice for conservatory.........

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Right, first off, the mrs is driving me mad with this as it aint as straightforward as "should i pay cash or get a vat invoice for my conservatory?" type of dilemma.

One of my best freinds is doing our conservatory. He helped me build a 22sqm extension 3 years ago and saved us 1000s.

His quote for the conservatory is £7k, yesterday i innocently asked how he wanted paying and he asked "do you want to pay cash or go through the books and add vat?"
Now, he's a very trustworthy friend. If i had issues with the build, he'd sort them regardless. I queried the warranty on the conservatory part of the build (excluding base and bricks) and he said the guy he gets to do that will certify and warranty it as he has his own conservatory company.

So, the mrs is doing one about this. She wants a receipt (why?).
We had the same argument with the extension. She says because she works for the inland revenue she cannot risk doing things underhanded and that tax must be declared.
My argument is that however much we are charged and however much we pay, we are NOT responsible for the seller/builder declaring/paying tax on what we pay him.

Am i right, or is it me being the douche?!
If she insists on it going through his books and paying vat then we either pay an extra £1400 or if the original £7k quote included vat then we'd only be paying £5,833.

We desparately need to save money, but she makes me feel like some flippin criminal for paying cash.

What do you guys think? Our wedding on 24th august could rest on this decision, lol.

Ironically, her best friends are a married couple with their own gardening business. Last week they removed loads of crap from the garden to make way for the conservatory. They'll expect cash or a favour in return....
....wonder what the mrs will say to that!!!!

Help me oh forumites...........before i bury her in the footings!
 
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It's not for the VAT.

It's for his income tax.
 
Personally, given that HMRC are currently complaining about cash in hand jobs robbing the public purse and your wife works for them, then it would be a bit hypocritical and imorral to do it cash in hand.
 
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It's no difference with Jimmy Carr or any rich people using a legal loophole to keep their money away from the treasury, the whole tax system is a mess

It's always the Tories and Labour government looking after the rich and the tradesman attitude is if you can't beat them then join them!
 
Large scale tax avoidance is a symptom of a bad tax system.

Taxes are high for low quality services, I expect more and more people to find ways of doing "cash in hand" etc.

I mean if you look at council taxes over a 10 year period, they have risen massively (the freeze for the last couple of years still means they are above inflation when looked at over 10 years), VAT has gone up, fuel, fag and booze duty, various other "stealth" taxes.

And what we get for that are bureaucrats draining the system so they can live in luxury, whilst the roads fall to bits, and services are cut.

If there isn't some decent pruning in the management side of the civil service, I expect that we will become more and more like Greece, a country of tax dodgers.
 
So her indoors is worried about £1500 in round figures, it pales insignificantly in comparison to the MPs second homes scandal and now the bankers fiasco.

Another way of keeping the cost down is, your mate isn't doing the work for love, £7K sounds quite a good price to me, so you pay for all the materials on your plastic friend and pay your mate the cash he wants for his labour, so lets say the materials cost £3k you then pay £4k cash to your mate simples, this ensures he hasn't any transactions going through his bank for £thousands.
 
So her indoors is worried about £1500 in round figures, it pales insignificantly in comparison to the MPs second homes scandal and now the bankers fiasco.

Another way of keeping the cost down is, your mate isn't doing the work for love, £7K sounds quite a good price to me, so you pay for all the materials on your plastic friend and pay your mate the cash he wants for his labour, so lets say the materials cost £3k you then pay £4k cash to your mate simples, this ensures he hasn't any transactions going through his bank for £thousands.

Yes, i think this was the intention anyway; for me to pay for the materials etc then as you say, cash for the labour.
 
You are proposing to 'act like some flippin criminal' just like Jimmy Carr did.

If you wife-to-be wishes to keep her job, you would be better to behave like good citizens. You should do this anyway.
 
So her indoors is worried about £1500 in round figures, it pales insignificantly in comparison to the MPs second homes scandal and now the bankers fiasco.
No, she is worried about losing her job.

Like a cautious or honest cop would be if he was asked to buy stolen goods.
 
Aye, like it or not you are committing fraud in the eyes of the law and who could blame your wife for having reservations? Your 'mate' will also be making a healthy packet out of you by not paying any personal tax/NI not just saving you a few quid in the VAT.
 
It's not for the VAT.


It's for his income tax.
If the Workman is vat registered, then it's both (assuming he's a sole traderhiding a couple of weeds worth is one thing. £7La worth of conservatory is just asking to be caught.

We take cash, no problems with it, but it all goes through the books.
 
Take the lowest figure every time. His tax affairs are his tax affairs and nothing whatsoever to do with you.

The Mighty Joe-90 has spoken.
 
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