Builder payment schedule - minimising VAT payment

[garycat]

We are having an extension built, starting in early december which has been quoted at £27K + VAT. Now, since VAT goes back to 17.5% in January it is going to cost us another £700 if we pay the 17.5% rate rather than the current 15%.

So, is it possible for...

(a) the builder to date the invoice at 31/12/09 so we pay the 15% rate or

(b) We phase the payment so a large chunk e.g. £20K is paid before January or

(c) any other ideas?

[aberdeeneuan]

How well do you know the builder? As I'm not sure I'd be comfortable paying 20K up front to a builder to save 700 quid if I didn't know them well.

I'd also be wanting to have a solid contract in place before they start if you are going to front load it like that.

[eps]

In addition if he has to pay the VAT he will be looking to recover it in some way... Either by cutting corners or de-speccing items...

[garycat]

The builder has already done some work for us and seems OK, he also has good references from the architect so I think we can trust him.

[Simpo Two]

This sounds more like an 'Eric' question, ie the business forum.

[rsv gone!]

He can invoice you early. You don't have to pay it just yet.