How can I check if a Company is VAT registered

4sibbs

A friend has been charged VAT from a tradesman, it is a Limited company but they are not due to submit their first set of accounts for a couple of months, the friend has found out that the tradesman who carried out the work is bankrupt and his partner is now the sole director, there is a dispute with regard to the quality of the work and my friend is withholding the final payment whilst they consult with Citizens Advice. The company have refused to disclose their VAT number in an email they say 'contact HMRC'. This has proved impossible as the HMRC telephone number keeps saying they are too busy to handle the enquiry. Some research has indicated that HMRC won't disclose this information even if you write to them, the tradesman is threatening to sue for the outstanding balance but he has taken cash payments with no receipts, which will be used as part of the defence, it is important to the case to establish whether the company is VAT registered too so any help would be appreciated.

jimbo6977

http://ec.europa.eu/taxation_customs/vies/

robatwork

https://vat-search.co.uk/
which works for me and it's free.

I bet he isn't registered and would be very unlikely to want to go to court - there's no benefit to him to not disclose VAT number if he is registered and declaring properly. So one way or another he is up to some con, whether on your friend or the hmrc.

Let him take your friend to court.

eddddy

It sounds like your friend hasn't paid the final payment, so presumably your friend doesn't have to do anything.

In order to charge VAT, the tradesman has to provide a VAT invoice (with a VAT number).

Until that is done, your friend can refuse to pay the VAT.


However, you also mention a dispute over the quality of work. I guess your friend needs to be clear about whether they are withholding payment pending a VAT invoice, or because of 'breach of contract' - or perhaps because of both.

4sibbs

Thanks some good points, the Vies site can only check if you already have a number, I did check on the vat-search website and he isn't listed but wasn't sure how accurate it was. We don't think he will take her to court either because he is a registered bankrupt and having taken cash payments he could be in trouble for that too, we didn't realise that you can refuse to pay VAT until you have received a valid invoice that is a very interesting point, she offered a reduced payment on receipt of one but he has ignored that request. Citizens advice told her to write to him quoting the Consumer Rights Act 2015 so yes she is withholding payment for both breach of contract and no VAT invoice but his reply disputed this and gave her 24 hours to pay before court action our gut feeling was to do nothing or get a claim in first as virtually everything he did has to to be ripped out and a complete bathroom refit.
Thank you again really glad I posted

robatwork

4sibbs wrote: »

his reply disputed this and gave her 24 hours to pay before court action our gut feeling was to do nothing or get a claim in first

"24 hours to pay" = "I won't be initiating court action, I won't do anything but perhaps some rude or threatening emails".

If he does make threats tell him you(r friend) are reporting to police, and do that.

unholyangel

4sibbs wrote: »

Thanks some good points, the Vies site can only check if you already have a number, I did check on the vat-search website and he isn't listed but wasn't sure how accurate it was. We don't think he will take her to court either because he is a registered bankrupt and having taken cash payments he could be in trouble for that too, we didn't realise that you can refuse to pay VAT until you have received a valid invoice that is a very interesting point, she offered a reduced payment on receipt of one but he has ignored that request. Citizens advice told her to write to him quoting the Consumer Rights Act 2015 so yes she is withholding payment for both breach of contract and no VAT invoice but his reply disputed this and gave her 24 hours to pay before court action our gut feeling was to do nothing or get a claim in first as virtually everything he did has to to be ripped out and a complete bathroom refit.
Thank you again really glad I posted

Unfortunately that interesting point is incorrect.

The only time you can demand a VAT invoice is if you are VAT registered yourself - so you can claim it back.

The only people who essentially pay VAT are those who aren't VAT registered.

gettingtheresometime

eddddy wrote: »

It sounds like your friend hasn't paid the final payment, so presumably your friend doesn't have to do anything.

In order to charge VAT, the tradesman has to provide a VAT invoice (with a VAT number).

Until that is done, your friend can refuse to pay the VAT.


However, you also mention a dispute over the quality of work. I guess your friend needs to be clear about whether they are withholding payment pending a VAT invoice, or because of 'breach of contract' - or perhaps because of both.

Is that right?

I only ask as we run a vat registered company and have bills that, because the contract isn't on a business contract doesn't come with a vat invoice.

To date, as a result, we haven't claimed the vat back.

DoaM

You also don't have to be VAT registered unless your annual turnover reaches a certain amount. (£80k?) So even business contract may not be eligible for VAT receipts.

davidmcn

gettingtheresometime wrote: »

I only ask as we run a vat registered company and have bills that, because the contract isn't on a business contract doesn't come with a vat invoice.

To date, as a result, we haven't claimed the vat back.

It doesn't need to be a "business contract" for you to be entitled to reclaim the VAT. But some suppliers are reluctant to provide VAT invoices unless you have moved to a business contract. You can always try asking, if you haven't already.

unholyangel

DoaM wrote: »

You also don't have to be VAT registered unless your annual turnover reaches a certain amount. (£80k?) So even business contract may not be eligible for VAT receipts.

Mandatory VAT registration is if your turnover exceeds £85000 over the last 12 months or you expect your turnover to exceed £85000 in the next 30 days.

Businesses with turnover below that amount can still be VAT registered, its just not mandatory.

It does have to be purchased for use by the business in order to be reclaimable though - you can't put through personal purchases. Well, not unless you're willing to commit fraud/tax evasion.