Customers asking to pay cash to avoid VAT.

[topchippyles]

Builders do cash work all the time.

[Mick Dempsey]

9 hours ago, Khriss said:

No... Please dont infer that Dempsey is 'old'.... K

58 this year, what of it?

 

What interaction or reaction are you referring to where I have not wanted to be regarded as old?

[Ian C]

Builders do cash work all the time.

Builders generally don’t have “on the books” staff, pensions paye etc and little over heads.

[Mick Dempsey]

15 minutes ago, Ian C said:

 

Builders generally don’t have “on the books” staff, pensions paye etc and little over heads.

 

I would say builders have more complex finances than us, certainly more overheads.

 

We don’t have to buy materials with VAT, don’t have to buy stuff up front, we often get paid on completion, rarely are on site for longer than a few days.

Edited April 24, 2021 by Mick Dempsey

[devon TWiG]

12 minutes ago, Mick Dempsey said:

I would say builders have more complex finances than us, certainly more overheads.

 

We don’t have to buy materials with VAT, don’t have to buy stuff up front, we often get paid on completion, rarely are on site for longer than a few days.

it is quite common for builders ( on smallish jobs ) to get customer to set up account with the likes of Jewson and pay for it themselves or order online ....otherwise it will look like turnover is higher than the reality and saves getting stung by non paying customer !!!

[topchippyles]

2 hours ago, Ian C said:

 

Builders generally don’t have “on the books” staff, pensions paye etc and little over heads.

 

Your comment could not be further from the truth.

Edited April 24, 2021 by topchippyles

[muttley9050]

Builders generally don’t have “on the books” staff, pensions paye etc and little over heads.

it is quite common for builders ( on smallish jobs ) to get customer to set up account with the likes of Jewson and pay for it themselves or order online ....otherwise it will look like turnover is higher than the reality and saves getting stung by non paying customer !!!

As a builder I would suggest that these are both incorrect.
Builders have staff and pensions.
Same deal as an average tree surgeon outfit.
Although I'm sure it has happened. I really don't think many builders are asking customers to set up accounts with jewson. I have good relationships with my suppliers and I get good prices. Materials are then charged at +15 to 20%. A good earner.
I wouldn't trust a customer to have the correct materials on site when I needed them unless i spent a long time schooling them. This is what the mark up is for.

[ADC]

I really don't understand this. I would rather be paid at the end of the job in cash than by any other means. You give someone a price, to be paid on completion, they agree, you do the job, get paid in full, go home happy knowing full well you have been paid in full, and don't have to mess about chasing non payments. There are loads of self employed people that deal mainly with cash.
Also who likes giving their bank details out to everybody, not me, it just makes you more susceptible to fraudsters. Who carries a card machine with them ?, not everyone has internet banking. Do cheques still exist ?

I got a cheque from DLVA as a car tax refund. Luckily I was able to deposit it online with Lloyds Bank by scanning it in using my phone, as I did not fancy going into a town during a pandemic. Eventually the government will figure out that online is a far more efficient use of time.

[Ian C]

8 hours ago, Mick Dempsey said:

I would say builders have more complex finances than us, certainly more overheads.

 

We don’t have to buy materials with VAT, don’t have to buy stuff up front, we often get paid on completion, rarely are on site for longer than a few days.

Most small builders work out of a van or garage and can get customers to buy materials so dont need to show them on there turnover

[Ian C]

1 hour ago, muttley9050 said:

As a builder I would suggest that these are both incorrect.
Builders have staff and pensions.
Same deal as an average tree surgeon outfit.
Although I'm sure it has happened. I really don't think many builders are asking customers to set up accounts with jewson. I have good relationships with my suppliers and I get good prices. Materials are then charged at +15 to 20%. A good earner.
I wouldn't trust a customer to have the correct materials on site when I needed them unless i spent a long time schooling them. This is what the mark up is for.
 

Fair enough, some will but i don't know and small builders round me with on the books staff, i would say most are SE and payed cash.