Hi All,
Want to know what you’d do in this situation.
We’ve bought an investment house and have good tenants.
Within a month of buying it the neighbours on one side sent us a letter saying they wanted to replace the fence. They said it was old and needed replacing, though we were quite happy with it. (Truth is that they are holding a major family function at their place soon so are doing some major landscaping.)
Anyway, with their letter they also sent a quote that they’d decided was the one to go with. It meant that we were required to pay $1200.
We think these neighbours are nice people and the price seems about right, but the “invoice” didn’t have any formal letterhead. ie: We didn’t know who the company was that was doing the job.
So went to see the neighbours and explained that – in order to claim the fencing costs as a tax deduction – we need a proper invoice. He said he’d get on to it.
Still haven’t received a proper invoice, yet the fence is now up and looks fine.
We are almost certain that the job was a cash job – hence no official invoice.
So – what should we do? I feel a bit guilty not paying for this fence and we want to stay on speaking terms with our neighbours, but this is an investment property and $1200 is alot to pay without getting any tax benefits.
thanks,
Carlinhi carlin
it seems to me you have done the most appropriate thing – if you wish feel free to remind the neighbours that you need an invoice prior to making payment – this will make you appear pro active in the matter.
it also puts them on notice as such, no invoice, no payment. But, it says it in a nice way – which respects your relationship with the adjoining owner.
also, when/if you do recieve an invoice, do a quick abn search on the asic website to ensure the business providing the invoice actually exists.
considering the jobs already done, well, who knows what will happen??
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker BrisbaneHi Carlin
For the best answer to this question, I’d ask your accountant but I don’t believe you need an “official” tax invoice on a company letterhead, nor even an abn.
I have a fellow who does work for me, who is not abn registered, and he submits a hand written invoice with his name as the biller, description of work carried out, copies of relevant invoices supporting his out of pocket expenses and his labour charge.
My accountant has been satisfied with this to date, so see what your’s advises.
Cheers
DinahHi again
Forgot to add, I agree with Brahms….no invoice, no payment.
You have requested it once. Request it again politely with a timeline attached to it so you don’t get one out of the blue in 6 mths time.
Dinah
Thanks very much – sound advice which I’m going to follow today.
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