Builder not VAT Registered - how will this affect what I pay?

leachyd

grizzly1911 wrote: »

2.) By not having to include them in his bill it reduces his turnover, charging just for the labour, keeping him below the VAT threshold.

Point 2 benefits you as you save 20%.

Not necessarily true. Becuase his labour doesnt include VAT he can charge the same gross price for labour as a VAT registered builder but keep that extra 20% himself. if he wants to be more competetive he can charge a little less, and keep th rest for himself!

grizzly1911

leachyd wrote: »

Not necessarily true. Becuase his labour doesnt include VAT he can charge the same gross price for labour as a VAT registered builder but keep that extra 20% himself. if he wants to be more competetive he can charge a little less, and keep th rest for himself!

That is very true they can.

We recently had a job done and the guys business partner (co director) had left him so he could pick up (undercut him) because he could do the work without VAT as a sole trader.

Short term but the way of the world.