Non VAT registered builders all quoting with VAT added... am I being thick?

lizzie201296

Hi
I'm getting some work done on my house (kitchen refit, redecoration, new doors etc) and have had quotes from 5 different builders (I know it's a lot, got a bit carried away...) who I found on Checkatrade and all have top reviews. They all seemed perfectly legit. They are all quoting roughly the same for the job (around 6.5-7.5k inclusive of VAT).

However, I just happened to double check one of them on Checkatrade and noticed that it says they are not VAT registered. I checked the same for each builder, and none of them are VAT registered. I understand that you don't have to be VAT registered if you earn under a certain amount each year, but I don't understand why each one has sent me a quote with a subtotal followed by a total 'plus VAT @ 20%'. Does this literally mean they are just charging me an extra 20% to pocket the money? If they aren't VAT registered, they don't have to charge VAT right??

If it was just one builder who'd done this I'd think they were being a bit dodgy, but what are the chances of all 5 doing the same dodgy thing? Am I missing something or am I just clearly very gullible? Should I challenge them? (Didn't want to without checking here first, in case it is a legit thing and I'm just being stupid!)

Thanks  

Owain_Moneysaver

I wouldn't regard Checkatrade as being conclusive whether anyone is VAT registered or not. 
You could just leave it until the Invoice arrives. If it doesn't have a valid VAT number on it you can just pay the ex VAT price, as the seller cannot charge any VAT. You can check whether a VAT number is valid by phoning HMRC VAT enquiries. 

lizzie201296

Owain_Moneysaver said:

I wouldn't regard Checkatrade as being conclusive whether anyone is VAT registered or not. 
You could just leave it until the Invoice arrives. If it doesn't have a valid VAT number on it you can just pay the ex VAT price, as the seller cannot charge any VAT. You can check whether a VAT number is valid by phoning HMRC VAT enquiries. 

Great, thank you! If the builder asks me to pay some money up front, can I get the invoice straight away? That's a really stupid question I know - this is my first time organising any sort of major work so haven't had experience with invoices/paying builders etc before. I expect they will want part payment or something before they start and then the rest on completion - so can I ask for the invoice before my first payment, or will they only give an invoice at the end of the works? 

Don't judge my absolute uselessness at all of this  

macman

Would you really want to use a builder who is attempting to pocket an extra 20% though? Just ask them to clarify.

lizzie201296

macman said:

Would you really want to use a builder who is attempting to pocket an extra 20% though? Just ask them to clarify.

This is exactly my issue - I am not sure whether they actually are attempting to pocket the extra 20% or if it is legit to be charging me this when according to checkatrade, none of them are VAT registered. I want to get an idea of whether this is a common thing or not before I bring it up with them - don't want to p*ss off all my potential builders by implying they are trying to con me, and be left with nobody to do the work!

Doozergirl

It's not unheard of to ask for a deposit, but it's a worry if it's combined with this and, erm, checkatrade.  It doesn't have the greatest reputation for the quality of person. 

What tells you that they aren't VAT registered? 

I think it would be odd for all of them to be adding VAT.  The reason a lot of people don't want to be VAT registered is because they think it makes them uncompetitive.  

lizzie201296

Doozergirl said:

It's not unheard of to ask for a deposit, but it's a worry if it's combined with this and, erm, checkatrade.  It doesn't have the greatest reputation for the quality of person. 

What tells you that they aren't VAT registered? 

I think it would be odd for all of them to be adding VAT.  The reason a lot of people don't want to be VAT registered is because they think it makes them uncompetitive.  

Checkatrade shows company details for each builder, and there is a section for 'VAT registered?' and it says 'No' for each of them. Maybe as someone earlier said, it just isn't accurate... as you say, seems very unlikely that all 5 would say 'not registered' and all be adding the VAT. Suggests that checkatrade is inaccurate.

theonlywayisup

Do any of your quotes have a VAT number on them?

lizzie201296

theonlywayisup said:

Do any of your quotes have a VAT number on them?

No

southcoastrgi

If you aren't vat registered you aren't allowed to mention vat on the quotes or invoices, ie you can't say inc vat

Risteard

lizzie201296 said:

Doozergirl said:

It's not unheard of to ask for a deposit, but it's a worry if it's combined with this and, erm, checkatrade.  It doesn't have the greatest reputation for the quality of person. 

What tells you that they aren't VAT registered? 

I think it would be odd for all of them to be adding VAT.  The reason a lot of people don't want to be VAT registered is because they think it makes them uncompetitive.  

Checkatrade shows company details for each builder, and there is a section for 'VAT registered?' and it says 'No' for each of them. Maybe as someone earlier said, it just isn't accurate... as you say, seems very unlikely that all 5 would say 'not registered' and all be adding the VAT. Suggests that checkatrade is inaccurate.

Perhaps they weren't VAT Registered when they signed up to that ridiculous website but have since registered for VAT?