Tradesman wants bank transfer to a personal account

Mark__H

I recently had a new boiler and a couple of new radiators fitted by a local heating engineer (sole trader I believe).
I did some research beforehand and booked him on the basis of both local feedback and a well known review website.
(He is an approved installer for a very well known boiler manufacturer and gas safe registered) 
To be fair he didn't want any money up front, turned up on time and has done a neat job.

I was ready to give him a cheque on completion but he said he doesn't accept cheques and would instead send an invoice through, to be settled by either cash or bank transfer. I received an invoice the following day for £2400 (as agreed), being £2000 + £400 vat.

Now, I've come to set him up as a new payee on my online banking. I've realised that the banks have a new system in place that checks that the account name and number provided are a match, I guess for fraud prevention purposes. I've put in the account name as 'Joe Bloggs t/a xyz plumbing' business account and the bank's system has returned a "partial match" message saying the account is actually just 'Joe Bloggs personal account'        

Should I be concerned in any way regarding the discrepancy, especially bearing in mind that I'm being charged VAT on the invoice OR is just a case of him avoiding bank charges and tax liability by operating through a personal account and none of my business?  

Herzlos

You're paying him as he asked and VAT is supposedly accounted for, leave the admin work up to him.

tacpot12

I don't think I would be concerned. Many sole traders will not have opened their business bank account with the trading name of the business but will have opened it in their own name. 
Being charged VAT should be no comfort to you, as the issue in dispute here is are you paying the person or their business. As a sole trader is one and the same, you don't need to worry. 
I would check the VAT registration number of the business here, before paying the invoice: http://ec.europa.eu/taxation_customs/vies/ 
If you find that the VAT number is invalid or registered to another business, I would not pay the VAT element. You might consider reporting the trader to the HMRC Fraud team on 0800 788 887.
If they are fiddling VAT, they might also be fiddling their income tax. 

TELLIT01

Not a problem.  It's actually good to see that banks are now doing more thorough checks before passing money on. 

Mark__H

tacpot12 said:

I don't think I would be concerned. Many sole traders will not have opened their business bank account with the trading name of the business but will have opened it in their own name. 
Being charged VAT should be no comfort to you, as the issue in dispute here is are you paying the person or their business. As a sole trader is one and the same, you don't need to worry. 
I would check the VAT registration number of the business here, before paying the invoice: http://ec.europa.eu/taxation_customs/vies/ 
If you find that the VAT number is invalid or registered to another business, I would not pay the VAT element. You might consider reporting the trader to the HMRC Fraud team on 0800 788 887.
If they are fiddling VAT, they might also be fiddling their income tax. 

Thanks. I've checked the VAT registration number as suggested. It is registered to the 'trading name' of the business and at the correct home address.
There is no mention of the individual behind the business but I guess that may be the norm? 

pinkteapot

I wouldn't worry at all. If you'd given him a cheque, it would have been paid into the same personal account. The fact he's using a personal account for his business is an issue for his bank - who would rather he had a business account that he'd have to pay fees for - not you.

All you know he's avoiding is bank charges. There's no obligation to have a business bank account in order to pay your taxes as a sole trader.