advice on quotes I have received

[agh100]

Hi
Have recently got some quotes of 3 local firms for fitting a new Control Unit/ fusebox, earth bonding in bathroom, gas/water and mains supply and complete re-wire of the lighting and switches.
The quotes come in at £890, £1468, and £750. It is usual for such a range of prices, I have no experience in this but they all seemed to quote for the same work so I dont know why there so different!?
I asked the person who quoted £750 if it included VAT and they said they are not registered for VAT so there is no need to pay it - does this sounds right?
The other 2 quotes both say including VAT, so they are clearly charging it.

Cheers

 

[material.buyer]

Are all the people you've got quotes from Registered with the relevant bodies? I.E. Are they qualified to do this work?

 

[Taylortwocities]

So that makes your two lower quotes about the same. yes if the £750 guy is not VAt registered he cant charge you for it.

Make sure your quotes all include certification and notification to the local authority (Building Regs Part P applies).

DOnt know if any of these prices are reasonable without looking at the job on site.

 

[agh100]

Hi
I got them all from the competent person website I found a link to on here, they are all part P registered.

I just thought they would all have to pay VAT. I thought if you werent paying VAT then it was a bit dodgy like cash in hand?!

Thanks

 

[denso13]

No, a business has to be vat registered to be able to charge vat.
Normally this goes by reaching a turnover threshold.
If they're not vat rergistered they won't charge it.

 

[Taylortwocities]

A co has to be turning over more than £64,000 to be VAT registered so most small co's (1 man and a small dog) will be inside this.

If they are on the comp person site then they are accountable and you can trace them thru the organisation they are registered with (NAPIT, NICEIC, etc) and you have final redress to the organisation if something goes wrong and the spark cant/wont sort it for you.

You'll probably find their workmanship is guaranteed as part of their scheme registration.

 

[denso13]

A co has to be turning over more than £64,000 to be VAT registered

You can actually choose register for Vat with any turnover, however small, but over £64,000 it is a requirement.

 

[Taylortwocities]

I know. Was trying to keep it simple without a full financial detail.

 

[wiggles]

Two of the quotes are no so different. The ones for £890 and £750 would be almost identical if the £750 guy was charging VAT (£750 = £881 with VAT).

Assuming all things are equal (i.e. all firms are registered, qualified and issuing certs) my guess would be that the guy quoting £1468 did not want the job. It's a well known tactic in many businesses to quote a high price when you don't want the job - that way, if you do get it at least you are well rewarded. There could be a number of reasons why they don't want the job - to busy, working in another area etc.

Personally, I would only use a spark that’s been recommended by a friend/neighbour with price being a secondary consideration.

 

[DJM]

Personally, I would only use a spark that’s been recommended by a friend/neighbour with price being a secondary consideration.

I would agree, but if none of your friends or family has anyone to recommend, then how do you choose? I am in that position and there is not even anybody listed on teh competent persons link near me so struggling there.

 

[sparkybird]

Well go with the one you felt most comfortable with then.

 

[securespark]

Two of the quotes are no so different. The ones for £890 and £750 would be almost identical if the £750 guy was charging VAT (£750 = £881 with VAT).

However, even a non-vat registered tradesman will still be charging VAT on materials ie passing the cost on, so it won't be £881.

 

[baldelectrician]

My company (small but perfectly formed ) is not - and has no intention of going down the vat route.

I don't do the big jobs, and it's only me in the firm.

by going vat registered I can stand to lose a fair slice of the domestic market.

 

[wiggles]

Two of the quotes are no so different. The ones for £890 and £750 would be almost identical if the £750 guy was charging VAT (£750 = £881 with VAT).

However, even a non-vat registered tradesman will still be charging VAT on materials ie passing the cost on, so it won't be £881.

No. The real significance is with the customer - in this case domestic. If the customer is commercial and VAT registered then they will be able to reclaim/offset all the VAT paid for both labour and materials - they should therefore be talking figures excluding VAT and be unconcerned with it.

For a domestic customer deailing with a supplier who is VAT registered, they are going to pay for the VAT on materials and on labour. They will have no way of reclaiming this. Where a job consisted of a lot of expensive materials and little labour, this should make little or no difference, but for a job with lots of labour, the additional expense would be significant.

For a domestic customer dealing with a supplier who is not VAT registered, the only VAT being passed on to the customer is that paid on materials.

 

[ebee]

£750 does not really equate to £881 if it includes materials