When a letting agent asks you to add on 10% plus VAT

[WaterTight]

To your bill to them, does that mean you add on 12% of your total or that you add 10% of your total plus 20% of that 10%?

Only worked for one before and they never asked about VAT.

 

[SafeGasInstall]

10% on top of final bill whitch willbe let say
from 300 inc vat (original bill )
to 330 inc vat

 

[mountainman]

Never had that before, they usually ask for cash.

 

[leelister6]

Add 10% then add vat i.e. £300 original bill +10% = £330 + vat = £396

 

[markfxy]

make sure they invoice you for it

 

[WaterTight]

They cancelled anyway but I'm still confused. I'm not VAT registered so I guess it's the Letting Agencies VAT I'm adding on? So that would be VAT on their 10% wouldn't it? Rather than 10% on total. Or maybe they were presuming I charge for VAT?

 

[REDSAW]

it is actually illegal so whatch your back imo.
if they want 10% then tell them to invoice their customer the difference.

 

[WaterTight]

Is it? I've only worked for two and both have asked me to add 10%.

 

[REDSAW]

Not sure of the inns and outs but just enough to know where to draw the line.
If your invoicing for their 'cut' then you are employing their services and paying them a commission (something like that). Hmcr will be breathing down your neck.
Tell them, you will invoice what you charge only.imo.

Or, if they want 10% on say £100 then up your bill, charge them £120 and tell them you have to pay tax on your invoices-take it or tell them bill yourself, dont do back-handers!!!!.

 

[tamz]

When a letting agent asks you to add on 10% plus VAT they are working you from the back.

I agree with Redsaw. Ring up HMRC and ask for advice :lol:

 

[TBServices]

So what are you saying? They expect WT to add 10% extra to his bill, and get paid 10% less than that number once they've skimmed it off?

Never come across this before.


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[WaterTight]

Yep that's exactly it. As I've said only worked for two different lettings agencies and both asked me to do this. To be honest I'd like to become busy enough that I turn them down outright because they're a pain to deal with.

 

[TBServices]

Yep that's exactly it. As I've said only worked for two different lettings agencies and both asked me to do this. To be honest I'd like to become busy enough that I turn them down outright because they're a pain to deal with.

Ditto. I'm still waiting for £1300 from one, nearly 3 months down the line. That said, I do work for one estate agents who are really good.


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[cr0ft]

I've just started working with one the other day. It was a quote for a cooker hood which is going to be particularly tricky to fit. i quoted £120 inc. VAT to fit the hood, £160 inc. VAT for the hood, and they want 10% of the total bill on top. That's £28 which ultimately the landlord will see on the invoice as a labour charge of £148 inc. VAT which is going to lose me the job.

I'll see how a couple go but tbh if they keep passing me jobs like this I will be doing a lot of quotes for free!

 

[woodsy]

I have to do this with one of the estate agencies that i work with and at the end of the month i get an invoice for the 10% 'commission' which i only pay when all the invoices are paid. I kicked against it when they introduced it as it makes me look expensive and also has lost me jobs but in this climate when they pay ok how do you turn down 1 day a week of guaranteed work ?

 

[kay-jay]

The agencies charge for the service they provide in terms of managing the property. Making an extra on your work is therefore illegal as it is breaching the contract between them and the owner. By doing this for them you are committing fraud

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[woodsy]

The contract is between their client and them. I work for the estate agency and to all intents and purposes am paying for the leads /work supplied to me in a commission. I find it morally wrong & deceiptful and would agree that they are wanting two bites at the cherry. On a personal note, the bad news for me is that i have been unable to increase any of my prices to them for the last 4yrs due to this and if anything, being stupid and honest joe, at times ended up reducing some of my prices because with their markup it made me look expensive.

 

[Kev the gas]

12.5% here:13:

My payments have a "contractors loyalty discount amount removed at the bottom" off the total amount payable.
At no time is any specific job mentioned near this amount, not happy about it but I get approx 150 gas safety inspections per year
plus all their plumbing jobs that I want to do.

Not happy about it but I know loads of guys who would jump into my place.

 

[BLOD]

contractors loyalty discount

lol - must be the same bunch I do work for