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I wish some advise.

We have a quote from a VAT Registered building company for work on an extension, this quote for simplicity was 50k GBP. At the end of the list of items on the quotethey will complete (doors, plastering, windows electric) they give the 50 k GBP subtotal.

After the above line on the quote they say this verbatim “20% all costs are plus VAT at standard rate”.

On receiving this quote, I found this very confusing as I did not understand what the word costs related, to the items or the total. I verbally queried if the amount 50k included VAT or not, I understood the answer to be no it was 50 k including the VAT.

We start the work, then first bill includes a agreed percentage let’s say 40% of the work. The expected amount was 20k but instead I get a bill for 20k plus VAT I.e 24k.

What are your thoughts? Stupid me or misleading?

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    "I verbally queried if the amount 50k included VAT or not, I understood the answer to be no it was 50 k including the VAT." doesn't make sense to me. – Simon B Nov 6 '19 at 21:45
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    Possible duplicate of Quotes for work by a tradesman in the UK: rules for VAT? .... "All price indications you give to consumers, by whatever means, should include VAT." tell the company in writing you intend to take this up with the trading standards office and will take it up with a solicitor or small-claims court if the company do not resolve the matter to your satisfaction within two weeks.. – RedGrittyBrick Nov 7 '19 at 13:21
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It doesn't sound well worded, but "plus VAT" means that VAT will be added to the amount stated. The standard VAT rate is 20%.

  • Two things: Any company with annual revenue Must be VAT registered so you wouldn’t find anyone doing a £50,000 job who is not VAT registered. And any company that is VAT registered must pay 20% VAT on the whole bill to the government, so they will charge you 20% on the whole bill. – gnasher729 Nov 7 '19 at 8:19

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