Is it an Estimate or Quotation for your work! Is the Vat Number correct?
Alan often finds clients do not understand the difference between en estimate or
quotation from a tradesman. An estimate is a non-fixed price; its can change: the
tradesman can charge you more than you originally expected or even agreed!
It is a legal requirement for the tradesman to first inform you, as soon as possible,
if he is likely to exceed his original estimate of charges and well before the end of
your job: the tradesman cannot, therefore, exceed his/her estimate and then charge
you more!
A quotation is a fixed price; by a quotation, the tradesman has agreed to charge you
no more and for such a price, whether the job costs him more or less to finish, that does not concern you; it is his problem! Pay him the fixed price only.
However, always carefully check your proposed contract or the tradesman’s terms of business with the trade person before you ask him to do any work for you.
Also, when you receive a bill from the tradesman for any work check the bill has a valid vat number if the tradesman claims to be vat registered; anyone can type a series of numbers to represent an official vat number to mislead you!
If the trademan’s bill does not mention a valid vat number or even what he claims is a valid vat number at all and he still charges you, for example, “£3,200 plus v.a.t” do not pay him v.a.t of £480, which is the vat on £3,200 at 15%: if you do, the total you have just paid him would be £3,760!
The tradesman has just deceived you of £560!
Check that the tradesman’s vat number is valid; use Alan’s v.a.t number on this website as an example.
1. The first seven numbers of the V.A.T registration number are listed vertically. Alan’s number is
843958190
2. Each number is multiplied by a number starting with 8 and decreasing to 2.
3. The sum total is calculated.
4. 97 is subtracted from the sum as many times as is necessary to arrive at a negative number.
5. The negative number should be the same as the last 2 numbers of the V.A.T registration number if it is a valid v.a.t number
Example
V.A.T registration number 843958190
8 x 8 = 64
4 x 7 = 28
3 x 6 = 18
9 x 5 = 45
5 x 4 = 20
8 x 3 = 24
1 x 2 = 02
Total = 201
201 - 97 -97 -97 = - 90
Alan’s V.A.T. number is 843958190
As the negative number - 90 is the same as the last two numbers of Alan’s firm’s v.a.t number, Alan’s v.a.t number is valid.
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