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Smudger

  • Posts: 13438
Non Vat Company stating VAT is in the price
« on: July 26, 2024, 12:17:04 am »
Came across this a few days ago - was asked to quote for a roof clean - which I duly did - the price included the m/c hire and my charges and then clearly stated + VAT

The lady then produced a quote from another company with a price (something ridiculously cheap and the words VAT Included

I'm not worried about being beat on on price - in fact I'd lose money getting anywhere near that price but I thought it cheeky to say VAT included when they are not VAT registered .

any thoughts...
Never argue with an idiot, they will only bring you down to their level, and beat you with experience

Spruce

  • Posts: 8462
Re: Non Vat Company stating VAT is in the price
« Reply #1 on: July 26, 2024, 05:47:28 am »
Came across this a few days ago - was asked to quote for a roof clean - which I duly did - the price included the m/c hire and my charges and then clearly stated + VAT

The lady then produced a quote from another company with a price (something ridiculously cheap and the words VAT Included

I'm not worried about being beat on on price - in fact I'd lose money getting anywhere near that price but I thought it cheeky to say VAT included when they are not VAT registered .

any thoughts...

Some cowboy trying to look professional, is the way I see it.

He's letting her know that his price is actually less, but has to include 20% for the tax man because he is a successful, legitimate business man.

From what you have written, there is only going to be one looser if she accepts his quote.

I don't know how he stands with regard to law for starting the price includes vat when he isn't vat registered. I can't see the tax man making an issue of it. However, if he added another 20% separately onto his price as vat, then I would imagine they might take a dim view of that.

Maybe phone the customer back and let her know the quote is from a non vat registered company and she should take the vat amount off the price he quoted. 😂




Success is 1% inspiration, 98% perspiration and 2% attention to detail!

The older I get, the better I was ;)

deeege

  • Posts: 5008
Re: Non Vat Company stating VAT is in the price
« Reply #2 on: July 26, 2024, 06:15:01 am »
I’d say he’s just written his quote out badly.

I think what he means is ‘prices not subject to VAT’ which is what I write on my quotes.
"....and it's lend me ten pounds, I'll buy you a drink, and mother wake me early in the morning."

AuRavelling79

  • Posts: 25378
Re: Non Vat Company stating VAT is in the price
« Reply #3 on: July 26, 2024, 07:28:23 am »
I would just sow seeds of doubt as to his credentials.

I understand Mrs. Lady but may I  suggest you ask him his VAT number to protect yourself from any fraudulent activity?

It's a game of three halves!

Ggh

  • Posts: 1776
Re: Non Vat Company stating VAT is in the price
« Reply #4 on: July 26, 2024, 07:37:22 am »
HMRC will not be happy if he is charging VAT and keeping it. I would let them know.

Stoots

  • Posts: 6211
Re: Non Vat Company stating VAT is in the price
« Reply #5 on: July 26, 2024, 11:47:38 am »
Probably badly worded but could land him in trouble i guess if it ever came to light

Smudger

  • Posts: 13438
Re: Non Vat Company stating VAT is in the price
« Reply #6 on: July 26, 2024, 12:39:05 pm »
I agree - if it was shown as extra I would agree the tax man would be interested.

my thinking was he was trying to make out he's bigger than he is - he's been in window cleaning a few more years than me but now trying to do p/w work

spruce - I might just do that  ;D
Never argue with an idiot, they will only bring you down to their level, and beat you with experience

Tam1872

  • Posts: 56
Re: Non Vat Company stating VAT is in the price
« Reply #7 on: July 26, 2024, 04:40:13 pm »
Do you not need unique invoice numbers on your receipts so everything lines together when companies claim vat back etc ?.

martinw

  • Posts: 243
Re: Non Vat Company stating VAT is in the price
« Reply #8 on: July 26, 2024, 10:01:59 pm »
The only time one can use vat included phrase when they on fixed lower threshold of vat. It’s illegal to  have this wording  under any other circumstances. Vat number must be on paperwork clearly visible. This really frowned upon and they can have book thrown at easily.

Point this out to customer as if they are misrepresenting themselves in that way  what else they are not telling… it’s illegal to charge vat if not registered

Smudger

  • Posts: 13438
Re: Non Vat Company stating VAT is in the price
« Reply #9 on: July 26, 2024, 10:58:14 pm »
interesting .. thanks for the replies
Never argue with an idiot, they will only bring you down to their level, and beat you with experience

Spruce

  • Posts: 8462
Re: Non Vat Company stating VAT is in the price
« Reply #10 on: July 26, 2024, 11:03:25 pm »
The only time one can use vat included phrase when they on fixed lower threshold of vat. It’s illegal to  have this wording  under any other circumstances. Vat number must be on paperwork clearly visible. This really frowned upon and they can have book thrown at easily.

Point this out to customer as if they are misrepresenting themselves in that way  what else they are not telling… it’s illegal to charge vat if not registered

I would expect him not to issue an invoice. If he did it will just be for the full quoted price as a single figure.
Ie. Roof cleaning as required  £10.50, total £10.50.
He would possibly also ask for cash and not write out a receipt.

However, one of the local window cleaners was vat registered even although his turnover didn't require him to be vat registered.

It could be that this chap has registered for vat, but hasn't presented his quote correctly. I would certainly give the 'pot a stir' and sow a few seeds of doubt in her mind.

One of my customers had a cleaner knock on their door. £5 a clean. My comment was at that price, is he looking for an opportunity to see what you own to burgle you?  Nothing wrong sowing seeds of doubt.
Success is 1% inspiration, 98% perspiration and 2% attention to detail!

The older I get, the better I was ;)

carl stanton

  • Posts: 818
Re: Non Vat Company stating VAT is in the price
« Reply #11 on: August 02, 2024, 10:21:05 pm »
It could be simply the other person has made an error on his quotation such as an automatic or pre filled in form on a template.

Error of information or misrepresentation would need to be determined if needed. And as yet the V.A.T hasn’t been taken.  According to the Finance Act of 2008, businesses that issue an invoice showing VAT when they are not registered are liable to pay a penalty up to 100% of the amount shown on the invoice. Even an error could lead to penalties, so you should take care to leave VAT off your invoices entirely if you’re not registered.



Scottish Cleaning Service

  • Posts: 383
Re: Non Vat Company stating VAT is in the price
« Reply #12 on: August 03, 2024, 10:08:57 am »
I had to make out an invoice for a charity. They told me to say no vat included and this was the total cost. They just wanted to make it clear that 20% wasn't going to be charged at the end of the job.

Smudger

  • Posts: 13438
Re: Non Vat Company stating VAT is in the price
« Reply #13 on: August 04, 2024, 06:08:56 pm »
I had to make out an invoice for a charity. They told me to say no vat included and this was the total cost. They just wanted to make it clear that 20% wasn't going to be charged at the end of the job.

So that’s the exact opposite of this topic then 🙄
Never argue with an idiot, they will only bring you down to their level, and beat you with experience

Scottish Cleaning Service

  • Posts: 383
Re: Non Vat Company stating VAT is in the price
« Reply #14 on: August 05, 2024, 08:30:56 am »
Came across this a few days ago - was asked to quote for a roof clean - which I duly did - the price included the m/c hire and my charges and then clearly stated + VAT

I have read this a few times and still don't know the full interpretation of (was asked to quote for a roof clean) did the quote need to have Vat in it or did the customer want the full final price? If you could clarify what the customer wanted then we can understand the full facts. Many thanks.

Smudger

  • Posts: 13438
Re: Non Vat Company stating VAT is in the price
« Reply #15 on: August 05, 2024, 01:55:35 pm »
I suggest you read it properly and in FULL  ;)
Never argue with an idiot, they will only bring you down to their level, and beat you with experience

Smudger

  • Posts: 13438
Re: Non Vat Company stating VAT is in the price
« Reply #16 on: August 05, 2024, 01:57:29 pm »
Came across this a few days ago - was asked to quote for a roof clean - which I duly did - the price included the m/c hire and my charges and then clearly stated + VAT

I have read this a few times and still don't know the full interpretation of (was asked to quote for a roof clean) did the quote need to have Vat in it or did the customer want the full final price? If you could clarify what the customer wanted then we can understand the full facts. Many thanks.

not WE - just YOU
Never argue with an idiot, they will only bring you down to their level, and beat you with experience

Scottish Cleaning Service

  • Posts: 383
Re: Non Vat Company stating VAT is in the price
« Reply #17 on: August 05, 2024, 02:49:28 pm »
Thanks for clarifying it. Realise now why you never got the job.

Smudger

  • Posts: 13438
Re: Non Vat Company stating VAT is in the price
« Reply #18 on: August 05, 2024, 03:04:59 pm »


Never argue with an idiot, they will only bring you down to their level, and beat you with experience

robbo333

  • Posts: 2419
Re: Non Vat Company stating VAT is in the price
« Reply #19 on: August 05, 2024, 09:18:24 pm »
In my opinion, they are a couple of guys trying to look like a larger company, and hence have more credibility by incorporating the word 'VAT' in their quote.
If they were VAT registered, they would charge a higher, more realistic price and show the VAT separately, for ease of accounts and I think it is also a legal requirement to show the VAT separately on a quote.
Probably a couple of chancers!
PS I shop in Aldi (I love their 'Essentials' frozen chicken breasts and frozen white fish!) Nearly half the price of the fresh stuff.
Anyway, on their receipt they show the price of your shopping. If you look down the receipt, you will see the VAT is shown separately, for both 0 percent VAT and 20 percent VAT.
"Thank you for calling: if you have a 1st floor flat, mid terraced house, lots of dogs, no parking, no side access, or no sense of humour, please press hold!
For all other enquiries, please press1"