lb00

Thank you all for your replies. I am more than happy to pay VAT on materials and that was how we settled at the start of the works. Builder gets materials, pays 1200 (1000 net + Vat), sends me receipts and I pay straight away the 1200. Now what he said is: "to save you the VAT give me the 1200 in cash instead of through bank transfer". I have no objection to paying the full 1200 and it is indeed what I expected and was prepared to pay. What I don't like is that he is taking me for a ride when arguing he will save me the VAT by paying cash. The reason for this I guess is that he is getting the money for my materials in cash, issuing no invoice, and still reclaiming VAT on those materials. So he effectively paid for them the net (1000) whereas I pay 1,200 and he pockets the 200£. That I am not liking at all as he is breaking the trust relationship. Thank you.

Thank you for your replies. Just to make sure as perhaps I haven't been clear enough, I will be paying all the work with invoices by bank transfer. The issue above is only regarding the materials for which he has provided receipts and asked me to pay cash. Am I correct in assuming the builder will claim the VAT back on those invoices for the materials he bought?The business is VAT registered. He has accounts with some of these suppliers, some other he has paid by credit card. If his cost for the material is actually the Net price, as he is reclaiming VAT, but he is asking me to pay the gross with VAT even if I pay cash, then it seems to me he is recovering VAT twice, once from HMRC and once from me. Thank you.

Notes with an informal receipt that I paid the materials.

Hi everyone, I’m currently renovating my house and have an agreement with the builder for a price excluding materials. Since the carpenter, who is on site daily and doing most of the work, is a family friend, we agreed with the project manager to pay for materials separately. As a discount arrangement, the agreement was we'd pay for the materials at cost (no markup) upon presentation of receipts. Recently, the project manager asked me to pay for materials—around £1,000 NET i.e. £1,200 GROSS—in cash instead of providing an invoice. He mentioned this would allow us to “save the VAT.” However, he’s asking me to pay the GROSS amount, which includes VAT (£1,200). From my understanding, as a VAT-registered business, he will likely reclaim the VAT from HMRC in his VAT return. This seems like double compensation for the VAT—once from my payment of £1,200 (including VAT) and again by reclaiming the VAT from HMRC. What do you think about this situation? Thanks for your advice!

Hi everyone, I’ve just agreed on a price and start date with our builder for some work on my flat. The project includes replacing the flooring (I’ll be supplying the tiles I’ve already ordered) and skirting boards, renovating two bathrooms, doing some minor electrical work (mostly adding a few sockets and replacing spotlights with LEDs), and redecorating. Here are the payment terms the builder proposed: • 20% deposit on acceptance of the quote • 1st interim payment: 30% • 2nd interim payment: 30% • 3rd interim payment: 10% • Final balance payment of 10% on completion I’m thinking of asking to change this to 20% on the start date, then 20% at the completion of each 20% of work milestones (so at 40%, 60%, 80%, and 100% of the work). What do you think? Should I also ask for a retention? The builder also mentioned we don’t need a formal contract and that the quote should be enough. I still plan to get him to write down everything he’s committing to in an email to avoid misunderstandings. Do you think it would be worth doing a more formal FMB or JCT contract? Thanks!

Hi everyone, I’ve just agreed on a price and start date with our builder for upcoming work on my flat. The project includes replacing the flooring (I’ll be supplying the tiles I’ve already ordered) and skirting boards, renovating two bathrooms, doing some minor electrical work (mostly adding a few sockets and replacing spot lights with LEDs), and redecorating. We’ve agreed that the following materials: adhesive, paint, wood, plasterboard, plumbing fittings, grout, silicone, and screws will be paid for by us as they are delivered. How much should I be paying for these materials for the works above? One question I have is about the plumbing fittings—I assumed these would be included since the quote specifies bathroom renovations with plumbing. Should I push back on this? Thanks in advance!

Can you give me a rough estimate of how much it'd be to replace with a new system? I guess it'd just be the cost of new units plus replacing them given that as you say it's all ducted? Do you think it'd be noisy at night? Also I understand best way to make the AC work would be with a smart thermostat that switches it on just before we get home in the evening and automatically in the morning? Or a normal thermostat would be enough? Thank you.

Hi all, we've recently purchased a flat in London and are about to renovate it. The flat is 72 sqm, two beds two baths, lounge/kitchen and a small hallway. I am attaching a plan. There is no gas. Hot water is provided through a Megaflo cylinder. Insulation is alright. In terms of heating needs, my brother and I will be living there and are at work Mon-Fri during daytime. However my family will be visiting often and in such cases the house will have to be warm throughout the day. Heating wise, we have the following options: Electric UFH: among the works we will also change the flooring so could be a good time to put electric UFH. We like the idea and the builder is also pushing for this option. Yet I have heard it's very expensive to operate. I struggle however to get a sense of how expensive. If we were to fit it throughout but for the bathrooms, how much would it be per day? Air-to-Air system: in the flat there already is a ducted air con system which is a Mitsubishi Mr Slim installed in 2002. There is an A2A external unit on the balcony and air vents in the lounge and 2 bedrooms. It's still working however is obsolete and I guess noisier than the current systems. The cheaper option could be just to make the current system smart through a thermostat? Or the other option would be to put a new system in place of the old one using the same air ducts and pipes. See pics attached. Electric Storage heaters: 3 dimplex quantums, one in lounge and one in each bedroom. We would prefer the UFH in principle as the warm feel coming from the flooring is more attractive but also don't want to spend a fortune to heat up the house. What would you suggest? Thank you!