'Knocking off VAT' for cash

[J9PUR]

Sorry if this has been asked previously, but.....

If a workman quotes us a price for their work (eg �5000 +VAT), and then says that if we pay cash they will 'knock off the VAT', what exactly does this mean?

Does it mean that the workmen are not going to declare the work to the inland revenue, thus avoiding paying income tax, and thus, they can pass on the 'saving' to us?

Many thanks!

[sn�gged]

Yes... but you won't get a receipt...

[J9PUR]

If you were going to hand over �5k in cash, surely you would want a receipt of some kind so that you have evidence that you have paid them, else they could come back the next day asking to be paid again??

[sn�gged]

Exactly! Take the saving and take the risk.

[jno]

this implies that they're dishonest. So yes, it would be nice to have a receipt, because it's possible they won't do an honest job. Personally I've always preferred dealing with honest people

[Ethel]

I wouldn't employ anybody on that basis - they are prepared to fiddle the state so why won't they fiddle you?

The are untrustworthy scammers. No receipt, no proof of contract, no comeback.

Get proper tradesmen to do the job

[jake-the-peg]

It means you'd be guilty of conspiracy to defraud customs and excise doesn't it?

[ELVIS68]

Tell them �4500 cash but you want a receipt

It`s up to you to decide whether they are scammers not the do gooders on here, get some references of other jobs they`ve done

No harm done doing the odd cash job here and there

[karmgirl]

yes I agree elvis, worker saves, customer saves, all happy

[sn�gged]

But they won't agree to a receipt will they?

As that means there is a paperwork trail... which could catch them out at a later date to the tax man...

[ummmm]

They may have slightly over priced the job to make it look like you're getting a deal with the discount. Just make sure you get a receipt.

[Ethel]

I suppose you think there's no harm in benefit cheaters either?

It's the same thing - robbing me

[barryjbutler]

I used to work at HMRC and can advise that accepting such a situation is definitely regarded as conspiracy to defraud and is prosecutable on all parties. Beware. If the chap is investigated you may get a knock on the door.

[ELVIS68]

It`s not the same thing, benefit cheats contrbute nothing, a builder who does the odd cash job here and there still contributes, ok so he`s not paying tax on it....so what

Try moaning about the real problems in society instead of petty ones

[Ethel]

They are robbing me though aren't they?

They are doing a decent tradesman who does pay tax out of a job.

[sn�gged]

Must admit, I have taken a 'no VAT cheaper price without a receipt' on a car repair of a few hundred quid... off someone I knew was reliable and good at their job.

But referring back to the original question, 5K for major building work would be too much of a risk for me to say yes.

[ELVIS68]

Well you pay the �5000 and the vat and let others pay cash and no vat, who`ll be better off?

It`s the government who are robbing you

[ummmm]

All the jobs I get done are for cash. Generally by friends. We don't call it cash though. They say 'just give us a drink'. How much you give them for drinking is up to you.

[sn�gged]

This particular example is not just about 'saving a bit of cash' though... peace of mind that you have some kind of recall if it all goes t!ts up is important too... something you may not get if you have no paperwork etc...

[RevFunk]

I work for cash in hand when I DJ and if people want a receipt I give them any load of old rubbish

[sn�gged]

Which is fine on a small amount of a hundred quid or so... but maybe not when you are spending thousands on your home...