Being asked to pay for services of landscaper up front

[gailjon]

Hi all, funny email received today and I was wondering if it had happened to anyone else.

We had arranged quotes for a patio to be fitted to our house after having various quotes. We chose a builder who seemed to have a good reputation and had the materials delivered to the house for fitting sometime April/May.

Just today I got an email form the landscapers that included this:

We have had confirmation from our accountant that we have now reached the VAT threshold due to the natural growth of the business.

With this in mind our accountant has advised us that we have Until the end of the month for any customers already booked in to make payments if they wish to prevent paying the additional VAT which would need to be added.

We came to the conclusion that 75% payments would cover the main costs with preventing any VAT to be added onto the Job.

Obviously, we understand if you wish to not make any payments prior to work commencing.

If you have any further questions or would like to discuss this, please don't hesitate to contact us.

Thank you for your understanding and be assured we are doing everything we can to get to all of your jobs as planed with recent events that have happened in the business and the lovely British weather.

Is this something that we should consider (paying the 75%?) I am worried that this seems a little bit of a 'we'll take your money and then buggar off' move from them. I don't think they are that sort of company but it does seem to be saying pay us the 75% now or pay an extra 20%.

Any thoughts?

 

[MrRockliffe]

I 100% wouldn’t be paying someone 75% upfront for any work, but unsure if this is the norm in this industry.

 

[Cleisthenes]

If they have indeed met the vat threshold then it's likely legitimate, but as above I'd still not want to pay that much up front. Depends if that extra 20% is going to put you off or not.

 

[gailjon]

Depends if that extra 20% is going to put you off or not.

I definitely don't want to pay and extra 20%! That would around £1500 to the cost. But then again, do I want to pay 75% of the job up front? I was always of the impression, and have always done in the past, only paid when job was completed to our satisfaction.

Just had large patio doors fitted and while we paid for the window themselves up front when delivered, we only paid for the building work once it was totally finished.

 

[SMN]

Depending on the job size, I always anticipate paying somewhere in between 25-50% as a deposit and for materials. At least for the first time i'm using a tradie, so they know you arent a time waster and going to leave them out of pocket. 75% seems.. high.

 

[200sols]

If you have paid for all the materials then it would be madness to give him 75% upfront.

 

[ZG002]

Looks like you have two real choices, pay the extra 20% or speak to the builder and be willing to cancel the job if they don't come in at the original quote.

Not really your fault they have messed up, they should have been aware they were that close to the threshold and quoted as such.

 

[psd99]

looks too much imo
what u going to do if you paid em 75% and they never contact u again?

most* credible businesses tend* to have credit cards/ credit agreement therefore my complaint has generally been why should I pay you a penny until you start the job?

 

[psd99]

actually the way that email is written they actually almost threaten you with " With this in mind our accountant has advised us that we have Until the end of the month for any customers already booked in to make payments if they wish to prevent paying the additional VAT which would need to be added."

run a mile from these people sounds dodgy to me trying to pressurize you into paying em really sickening

 

[clv101]

Did the original quote include VAT or not?

Were the builders expecting/hoping to not add VAT? Are to they still competitive if VAT is added?

 

[arknor]

is this some thing where you run a bushiness but never go above the 85k threshold so never register to pay vat?

I'd rather go with a company that doesn't try to avoid paying taxes if that's the case

 

[OpenToSuggestions]

Absolutely do not pay 75% up front.

 

[Steampunk]

Hi all, funny email received today and I was wondering if it had happened to anyone else.

We had arranged quotes for a patio to be fitted to our house after having various quotes. We chose a builder who seemed to have a good reputation and had the materials delivered to the house for fitting sometime April/May.

Just today I got an email form the landscapers that included this:



Is this something that we should consider (paying the 75%?) I am worried that this seems a little bit of a 'we'll take your money and then buggar off' move from them. I don't think they are that sort of company but it does seem to be saying pay us the 75% now or pay an extra 20%.

Any thoughts?

Out of principle I'd cancel the job. Sounds like when my in-laws were preparing to get their roof replaced, and the roofing company kept letting them down. Eventually my in-laws cancelled the job, and the company wanted a 30 percent return fee for the roofing tiles they'd bought. Only my in-laws hadn't even chosen what tiles they were having, so it was impossible for them to have ordered the tiles.

It's a common building scam to under quote to get the job, and then come up with all kinds of reasons why there are extra costs you have to pay along the way. I've known people basically kick builders off site and get new ones for that sort of nonsense, and that's why you never pay in advance, only as the job (or agreed milestones) are finished.

 

[fezster]

I'm not a VAT expert, but it's based on a 12m rolling gross turnover figure. The point at which it is exceeded is when VAT registration needs to take place (and subsequently VAT charged on services). Taking payment from you a month earlier simply means they exceed the VAT threshold a month earlier. I dont see how it allows them to escape paying VAT on that amount.

 

[Scam]

Never had a garden in my life but I'd run a country mile from that. Since when does a customer pay or not pay VAT anyway?

 

[robj20]

Did the original quote include VAT or not?

Were the builders expecting/hoping to not add VAT? Are to they still competitive if VAT is added?

This is the bit I don't get, if they got a quote then that's what you're going to pay. Their fault of they forget to add in a vat increase or what ever it is.
Personally I won't pay a penny until the job is complete and I've had chance to inspect the works. All the trade people I've used recently have all said things such as "pay me when you're happy with everything, phone me if you spot anything"

In this situation is tell them no thanks I'll find someone else.

 

[Conanius]

I have always been told - even by trades - never to pay a penny until work starts. Decent trades on big projects work "at risk to prove their worth" and then will ask for stage payments where they're always behind. Final balance never paid until work completed in full. Many trades I've used (and continue to use) would keep 5% unpaid until 1 month later when snags would be sorted.

20% vat or not, I'd be running a mile from paying 75% upfront. Sounds like cashflow issues.

 

[jpaul]

Did the original quote include VAT or not?

Were the builders expecting/hoping to not add VAT? Are to they still competitive if VAT is added?

that - yes

they had to fulfill job under original quote terms ... if they took on new work/expanded that's their problem.

I might well retalliate and say you may contact trading standards ... risk may be that they then do a shoddy job.

If you were paying vat - in terms of their liability, for any future issues, would that be improved.

 

[alex24]

Ask them to work as per the original quote and agreement, if they won't, walk away. There are other companies who could do the work for you and this would be a big alarm bell for me. Don't pay anything in advance unless you are sourcing your own materials.

If I had to guess, sounds like they are either taking you for a ride as they think they can get extra money, or they under-quoted and are trying to claw some money back. Either way, probably not honest and up front, I don't buy it personally.

 

[ivrytwr3]

Are you sure this is a genuine email?! What on Earth does the company's finances/VAT thresholds etc have to do with its customers?

You have your quote for the works and so should stick with that. If they do send a revised bill for 'additional VAT', tell them to do one.

Of course this is caveated with tradesmen are difficult to get hold of (good ones) and us as customers are at their mercy