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I'm getting the small loft at the back of my house converted so I can rent it out on Airbnb. The builder says it will cost ?65K if I pay him ?5K cash per week whilst he's doing the work, but that if 'I want to do it the other way' it will be more like ?114K! What does he mean by the 'other way? Also should I just give him a bundle of ?50s each week or should I count it out together with him?
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https://www.eastdulwichforum.co.uk/topic/124119-paying-for-loft-extension/
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By the other way he presumably means helping him avoid income tax and VAT - tell him to sling it! Not only is he asking you to be complicit in cheating the exchequer (which ultimately is cheating schools, hospitals etc) but if he does substandard work, or just doesn't finish the job, you'll find it difficult to get trading standards interested in an off-the-books black economy deal.


Also, as MM says above, it sounds like he's charging what it should cost anyway with tax paid but pretending he's doing you a favour. Go with a legitimate VAT registered business and get proper receipts and pay by cheque or bank transfer - apart from anything else withdrawing ?5K in cash every week and transporting it around is an accident waiting to happen! Good luck.

Are you sure you know what you're doing!?


He means it would be cheaper in cash so that he can avoid VAT and taxes (income, NI contributions, pension payments etc. to his workers).


The one-man-band plumber or plasterer doing the odd small job for cash I see no problem with, but not for a loft extension firm with employees doing major building work!


Avoid, it will not be worth it, get at least three quotes from proper VAT registered firms.


Southwark run an approved trader's scheme for what it's worth http://www.southwark.gov.uk/info/200098/trading_standards/286/10_builders_award_scheme

He should give you a contract with clear payment terms set out. When we had our loft done it cost 65k but only because they put in a whole new heating and hot water system and re-roofed the whole house. Your builder sounds expensive and dodgy not to mention slow as 5k a week works out at 13 weeks!

Avoid this builder..


He may well request more money for materials. Walk off the job blaming you.. if you are not happy with paying out more money.

He could just dissapear leaving you with an unsafe house. Possibly with part of your roof missing.

If he does finish the job and you have problems with the finished build you will not have a leg to stand on..



There are a lot of day time T.V. programs exposing cowboy builders.. often operating in this way.


Find yourself a registered builder that will not request payments in this way.

You may well need to pay a deposit with the balance to be paid on completion.


I had some windows and patio doors fitted by Bespoke Windows..

The Rep. came round and did a prelimary measure up. gave me a price (not a quote)

Worked out any discount..

I paid a deposit.

Work was completed on agreed date.

I agreed I was satisfied with the work

Only then was I invoiced for the balance.. I paid.. and then recieved all the Garantees


This is how things should be.


DulwichFox

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