'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!

[ELVIS68]

Paying �5000 and vat is still no guarantee you won`t get turned over though

Cash is King...Tax are small nails for holding down carpets

[jake-the-peg]

Always some Jack-the-lad who thinks he's clever and can "work the system"

Then he goes onto the news thread and gives out about foreigners ruining the country

Or onto the law one and gives out about theives and criminals.

Seems it's not stealing if you're stealing from everyone

[ELVIS68]

Ruined not ruining

[jake-the-peg]

Nice! bemoaning the state of the nation whilst stealing from it.

Class act Elvis

[karmgirl]

As elvis says its not as if these tradesmen don't contribute anything. At least they are working. Its the benefit cheats and the goverment we should be blaming.

[karmgirl]

they are the ones who are ripping us off.

[jake-the-peg]

I'm not talking about benefit cheats I'm talking about tax evasion

You just can't dodge tax, break the law and hold yourself up as some sort of patriot.

Tax dodgers are criminals - end of story

[J9PUR]

Many thanks for all the answers - hope I haven't opened up a can of worms!

We have a written quotation for the work, but would insist on getting a receipt if we can. Luckily we don't have to pay until the work is complete which is much less risky.

[tubeway]

Sorry but I can not understand why it is OK to steal �875 from me by not paying VAT. How is this different from signing on and fraudulently and gaining the same amount. Also if it is off the books - there is probably no income tax on profits, tax paid by subcontractors etc so that is well over a thousand pounds stolen. I can not understand why anyone is condoning this - its a wind up, right?

[jno]

I guess Elvis would think differently if J9PUR mentioned that the workmen were immigrants?

[Twenty20]

I think any sensible person would want a receipt to show they'd handed over �5k to someone.

Paying in cash isn't a crime. It's the person charging you the 5k who has the responsibility to pay his vat (if indeed he is registered to collect vat). It is a crime I think not to give a vat receipt if asked though.

Many large companies (sofa retailers, car dealers etc) offer to knock off the vat - all it means is theyre prepared to reduce their price by 17.5% thats all.

Always get a receipt, especially for this amount of money.

[ELVIS68]

Typical jno to add a sarky comment but you are right, I`d have said don`t give them the job to start with

I`ll leave you and your lot to employ immigrants to do your work and let you pay them the vat which if you think will be declared you are a bigger tw@t than I first thought