Builder not VAT registered - Risk?

doberryfirkin

I am about to ask a builder to do a small piece of extension work to my house which is circa £5500. The builder is not VAT registered therefore his quote is lower than others. He seems to have references. Am I taking a risk in letting him take on the work? If there is a risk is there anything I need to do to protect myself if I want him to do the work?

katz03

VAT registration is not a problem - but you need to check his insurances!!

McKneff

There is no more risk with this builder than with any other, Not being VAT registered makes no difference whatsoever, apart from you getting the job done cheaper.

Have you asked to see any of his other work, thats the way to protect yourself.

Radsteral

being vat registered doesn't make the others any better
vat registred, most of the time will indicate that their turnover is bigger that this builder of yours,but not always the case

lots of builders though tend to keep under the 74000 k in order to be more competitive

as above check for any work he s done around, employer liability insurance and arrange for payment to be done on completed stages

WhiteHorse

A lot of tradesmen and small businesses are not VAT registered, and with good reason - it's a nightmare.

Many purposefully keep their turnover down below the limit for compulsory registration (it is voluntary below that).

pinkmami

Be thankfull he isn't VAT registered! You'll save a few £££! My electrician isn't regiestered & he is excellent.

keystone

doberryfirkin wrote: »

He seems to have references.

Seems is an unacceptable quantity. If he does well and good, if he doesn't show him the door.

Am I taking a risk in letting him take on the work?

Not in a million years if the question is VAT rated or not. Your risk is whether his refs are good and his workmanship and that would apply even if he was VAT registered.

Cheers

keystone

Radsteral wrote: »

...............employer liability insurance..............

Think you mean Public Liability Insurance but in any event I'm always bemused by this advice. PLI is for the contractor's protection not the client's.

Cheers

jkpd

The insurance he needs is contractors insurance,this covers him if he burns your house down or any damage,as for not being vat reg,not a problem on small simple jobs,but on larger jobs you would have to ask what kind of experience he has ie if as a builder not turning over 74k you would have to assume that he is only a jobing builder.In our trade you can turn over that very quickly i done 52k in nov on a new build and a large roofing contract,the main thing is that you get a good job for a fair price,good luck.

doberryfirkin

Thank you to all for the prompt advice. Re-assuring that MSE'rs have come up trumps - again.

Radsteral

keystone wrote: »

Think you mean Public Liability Insurance but in any event I'm always bemused by this advice. PLI is for the contractor's protection not the client's.

Cheers

public i meant keystone sorry