Builders and VAT...

[LondonJax]

We're about to get under way with a big building project. We've had four estimates, three have included VAT the fourth didn't. He's done work for the architect we're using in the past but the builder's reason for not charging VAT is that he does most of his work internationally rather than in the UK. The business is based over here in the UK. Does that seem right? I don't want to get involved with any cowboys and if this isn't a good reason for not being VAT registered I'd rather walk away from him now. The work shown on his website included extensions etc so a couple of those a year would take him into the VAT threshold I would think.

[wonkylegs]

That doesn't sound correct to me. I think he's spinning a line.
Here's the rules of VAT & building in the UK

www.hmrc.gov.uk/vat/start/register/when-to-register.htm are the rules on who must register for VAT
He will only not need to charge if the value of his work in the UK is very low - which would lead me to worry about his experience with UK regulations.

[mcneishloftsoflondon]

Hi! I would advise this to anyone looking;

Most credible, accredited building companies will exceed the vat threshold, furthermore, some points.......

For a large scale project involving construction work on your house your builder should offer some insurance-backed guarantee covering structural integrity and water ingress.

carry out due diligence and check on the company's and directors' history - companies house.

It can be very tempting when launching a project to be pulled in on price, but please check history - ask for references.

If the architect's recommending, check this out (they can be commissioned in some instances - it's a grubby old business!)

Be careful on giving large deposits, better is to pay frequently rather than big lump sums in advance.

It also comes down to your trust and confidence with the directors, choose on person as well. Get commitments from them in terms of time they'll put over to your project..

Hope that's useful, all the best