Issue with builders progress

[confusedcustomer]

Hello,

Our builder has invoiced us with a couple of invoices for the same project with what turns out to be an invalid VAT reference. All their invoices quote figures + VAT. We assume that unless they have a valid VAT reference, this is incorrect and against HMRC rules? They keep telling us we've not paid the VAT yet but I don't see how they can ask us for VAT if not registered. When asked for their VAT reference we just got a photo of the invoice that they'd already given us showing the invalid VAT no. If anyone can provide clarification that would be appreciated. We fear that they have quoted + VAT to be competitive when they are not due the extra amount.

We are also concerned that they are dragging their feet on our job and "finding things to do", because their next job has yet to start. They seem to be doing anything but the work that would get us to a point of building regs sign off. They have taken nearly 4 weeks to fit a very straightforward kitchen and keep telling us everything is more difficult than they thought hence trying to charge us more for the work. An induction hob took a day to fit into an already created cabinet (excluding 1 bit of wood they needed to chop).

I just want them out of our house but feel like they're going to be here forever! They regularly stay way beyond 6 telling us they want to make sure it's all good for us but we have kids and this eats in to the evening we have with them.

I understand a contract with the builders may have helped but not sure they would have adhered to it anyway. We also get WhatsApp messages at 10/11pm asking for more money....I sense after a bottle or 2 of Claret.

Anyway, thanks in advance for any advice/shared experiences.

 

[cdbe]

I smell a few rats!

In this situation I think the most important thing is to make sure you always owe them money, not the other way round - although even this may be difficult if they are completing stages of the project but the work is substandard. These situations rarely end well so aim to limit your exposure. I believe that VAT fraud is a fairly serious criminal offence, although from your point of view is doesn't change the "bottom line"

I would ask for this post to be moved to the building forum - it's a lot busier and I'm sure you will have building/contractual issues that would be better addressed there. I think you "report" a post to attract the attention of the mods.

 

[Ivor Windybottom]

Ignore the VAT issue, that's between them and HMRC and isn't your concern.

Also don't worry about how long it's taking.

Just focus on the quality of the work and the total paid. Are they doing a decent job for the money? If so then fine, if not then you'll need to take control of the situation, if necessary get rid and get someone else in. Or Do It Yourself!

 

[confusedcustomer]

Thank you both and apologies for the delay. My concern is they are charging us VAT yet their VAT reference on their invoice is not valid. We are concerned we are paying over the odds. Their work is "ok" bit not amazing and they are becoming more militant with their requests for more money. We have paid everything up until now. Surely the VAT should concern us as we're paying money that they won't register with HMRC? We run a business and always ensure VAT balances out.

Thanks again

 

[danfre]

Seem to remember that any money paid was deemed to include Vat.
Check with local Vat office to find out if they are registered.
It sounds like a con

 

[Ivor Windybottom]

If you're intending to reclaim the VAT then obviously you have an interest. They should get caught up with shortly after you attempt to reclaim the VAT that they haven't paid. You have to ask HMRC whether you'll be able to offset VAT that you've paid to a company if they haven't actually paid it.