VAT declaration

[Cpt Morgan]

Hello,

Could anyone advise on a VAT tax concern I have.

I have been provided with a request for payment (which has been made), for £11,345:78 which includes VAT which they (a builder) have advised is 5%

I then requested an invoice which was not forth coming, so I have chased and chased for this and over a year later this has been supplied for the same amount £11,345:78, but the inclusive vat charged on this states 20%!!

Also the invoice format does not seem to comply with HMRC format, and looks "dodgy".

Can anyone advise, as this builder (I have learnt) has a seriously dubious back ground and I am having some serious concerns regarding his work as well.

Thank you

[atticus]

Might the first step be to ask the builder to correct the invoice?

[Cpt Morgan]

Might the first step be to ask the builder to correct the invoice?

That is not my question

[wales01man]

have you checked that the VAT number is the builders or his ltd company if thats how he trades

[atticus]

That is not my question

With respect, you sought advice. My suggestion was intended as such. If there is a reply, it might be helpful for any further steps you might take.

[ULA]

I am not use if this answers your questions but a full VAT invoice must state:

* the supplier's name, address and VAT registration number
* the name and address of the person to whom the goods are supplied
* a unique identification number (see below)
* the date of issue
* the time of supply of the goods or services (this may be the same as the date of issue)
* a description of the goods or services supplied, including the quantity of each type of item
* the total amount, excluding VAT
* the total amount of VAT
* the price per item, excluding VAT
* the rate of VAT charged per item (if an item is exempt from VAT or is zero-rated, this should be clearly stated)
* the rate of any discount per item

In terms of the rate of VAT to charge I have linked below the @give website which sets this out:

https://www.gov.uk/guidance/rates-of...ate-conditions

About half way down is a heading Building and Construction, land and property, hopefully the work or something similar will help you decide whether what is the correct VAT for the builder to charge.

If the format of the invoice is incorrect or the VAT on this latest invoice has not been charged correctly then you need to go back and then you may need to back and challenge the builder.

[Cpt Morgan]

have you checked that the VAT number is the builders or his ltd company if thats how he trades

Yes and it is

[Cpt Morgan]

I am not use if this answers your questions but a full VAT invoice must state:

* the supplier's name, address and VAT registration number
* the name and address of the person to whom the goods are supplied
* a unique identification number (see below)
* the date of issue
* the time of supply of the goods or services (this may be the same as the date of issue)
* a description of the goods or services supplied, including the quantity of each type of item
* the total amount, excluding VAT
* the total amount of VAT
* the price per item, excluding VAT
* the rate of VAT charged per item (if an item is exempt from VAT or is zero-rated, this should be clearly stated)
* the rate of any discount per item

In terms of the rate of VAT to charge I have linked below the @give website which sets this out:

https://www.gov.uk/guidance/rates-of...ate-conditions

About half way down is a heading Building and Construction, land and property, hopefully the work or something similar will help you decide whether what is the correct VAT for the builder to charge.

If the format of the invoice is incorrect or the VAT on this latest invoice has not been charged correctly then you need to go back and then you may need to back and challenge the builder.

Hi, yes have seen this, but my point is that he has included vat of 20% on the payment application, and then provided an invoice for the payment associated with that application at 20%.

My question s this VAT fraud?

[atticus]

I could see that as a possibility if the invoice showed less VAT. The builder is presumably going to have to account for more VAT collected.

[Cpt Morgan]

I could see that as a possibility if the invoice showed less VAT. The builder is presumably going to have to account for more VAT collected.

Surely you mean more if the invoice showed more VAT. My assumption is that if the builder claimed 20% on the invoice this will mean he gets a larger return than if he declared 5%?

[atticus]

Not if you are paying the same total. Let's say you paid £120 including VAT. With VAT @20%, he has to account to HMRC for £20. At 5% it is £5.71.

So I struggle to see any dishonest gain if it is as you describe. Might "cock up" be a better description?

[Cpt Morgan]

Not if you are paying the same total. Let's say you paid £120 including VAT. With VAT @20%, he has to account to HMRC for £20. At 5% it is £5.71.

So I struggle to see any dishonest gain if it is as you describe. Might "cock up" be a better description?

Well given he is now trying to claim VAT is owing, I see this as attempted fraud at the very least? He has implied he only charged 5% VAT (apparently a temporary discount) yet the invoices (invalid as they are) show 20% VAT all of which were paid, so he is now trying to apply a VAT charge on-top of an invoice already charged at 20%, and he has charged VAT on cash payments which I believe is illegal. He won't provide invoices for these payments, and he won't provide receipts for any payments. I think he is legally obliged to do so given I am expecting to offset some of these payments through my own business when it is VAT registered, and business to business transactions require invoices so I am led to believe.

[barleynova]

It sounds like you've been through quite the ordeal chasing after that invoice. It's definitely concerning that the invoice doesn't meet HMRC format and the builder has a dodgy background. Can you provide any more details on the issue? It's always helpful to have as much info as possible when trying to troubleshoot.

[Cpt Morgan]

It sounds like you've been through quite the ordeal chasing after that invoice. It's definitely concerning that the invoice doesn't meet HMRC format and the builder has a dodgy background. Can you provide any more details on the issue? It's always helpful to have as much info as possible when trying to troubleshoot.

Hi, happy to provide as much info as required, what other info would be useful?