Builder not VAT registered - Is he dodgy?

redlee

A few builders around here get the customer to open a account with the local independant builders merchant (one good price to trade and public) the builder orders materials on this account and only charges the customer for labour provided easily keeping themselves under the vat threshold without any dodgyness.

iamcornholio

You get the likes of Boots shifting their world HQ to a little room in Switzerland to avoid paying billions in UK tax, and yet some people complain about a bit of cash in hand work for bloke struggling to make a living.

Cash is King!

The government would like us all to thing that cash in hand means cowboys and substandard work. No way

And the VAT threshold has no relation at all to dodginess. I've seen more crap VAT reg builders than non-VAT ones

diable

iamcornholio wrote: »

And the VAT threshold has no relation at all to dodginess. I've seen more crap VAT reg builders than non-VAT ones

Everest and Anglian windows spring to mind............

Foggster

I would check he has good insurance though!

mikepayne

I am going through the mill with a builder from Early, Reading who has tried to charge VAT without being VAT registered.

He will not accept this is illegal although he has now after 3 months 'waived' as an act of 'good faith' the VAT on the labour.

He is still insisting on claiming the VAT added to materials but will provide no evidence of whether the materials on the quote are Nett or Gross prices.

He was referred to us by a reputable building supply company in Theale, Berks, unfortunately he is anything but reputable!

So beware of builders who charge VAT but do not put a VAT No. on any of their documentation as they are required to do by law if charging VAT. They are simply uplifting all their prices by 20% and defrauding you and HMRC.

This builder has been doing this for years, so anyone in the Reading , Berks area be wary of this type of builder who quotes VAT once on the quote paperwork, but never mentions VAT again or provides a valid VAT number.

Charging VAT without being registered is illegal
Providing documentation without a valid VAT number when charging VAT is illegal
Committing tax evasion is illegal

Leif

diable wrote: »

The government put VAT up fuel is rising the rich get away with tax evasion MP's claim all they can so I see no reason why not to join the gravy train in thinking about number 1

I wouldn't employ a crooked tradesman as you have no come back, and can you be sure he/she will follow building regs if they avoid tax?

pinkmami

Even the VAT registered ones can be dodgy!

Our electrician opted out of VAT & he certainly isn't dodgy. Passes the savings on to his customers & saves us £800!

I just wished my plumber was the same...... the VAT on that bill could pay for a 1/3 of my kitchen! Ouch!

sunshinetours

mikepayne wrote: »

I am going through the mill with a builder from Early, Reading who has tried to charge VAT without being VAT registered.

He will not accept this is illegal although he has now after 3 months 'waived' as an act of 'good faith' the VAT on the labour.

He is still insisting on claiming the VAT added to materials but will provide no evidence of whether the materials on the quote are Nett or Gross prices.

He was referred to us by a reputable building supply company in Theale, Berks, unfortunately he is anything but reputable!

So beware of builders who charge VAT but do not put a VAT No. on any of their documentation as they are required to do by law if charging VAT. They are simply uplifting all their prices by 20% and defrauding you and HMRC.

This builder has been doing this for years, so anyone in the Reading , Berks area be wary of this type of builder who quotes VAT once on the quote paperwork, but never mentions VAT again or provides a valid VAT number.

Charging VAT without being registered is illegal
Providing documentation without a valid VAT number when charging VAT is illegal
Committing tax evasion is illegal

Firstly if you are 100% sure he is not VAT registered and is trying to charge you VAT then please report him to HMRC

Secondly if he is not VAT registered then the quoted price is the price you should pay (you cannot add VAT to a quote if you are not VAT registered) as he should be including the VAT he pays on materials in his total price he is charging you, as he won;t be recovering that VAT

What I would say is many trades have become de-registered during this recession as work has dropped off, as it gives them a 20% labour cost advantage to registered trades for the private customer

googler

property.advert wrote: »

Then again, you can still be VAT registered and do some work or purchases off the books.

Please tell us how this can be accomplished legally.

kr15snw

My Hubby is a builder and isn't VAT registered.

His total takings (before tax) is normally about £40k a year so he has no need to register!