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If a contractor isn't VAT registered....

10 replies

ChampagneTastes · 20/02/2015 14:41

Is that dodgy? Sorry, really stupid question but does it mean that they are not paying tax? Found a roofer, seems a trustworthy chap, has a website (I don't know why that makes him seem legitimate) but he said that there would be no VAT. Help me out people; I'm assuming I should look elsewhere.

OP posts:
LulaPalooza · 20/02/2015 14:47

It is probably fine - it just means that he probably doesn't make enough money each year for it to be worth his while registering for VAT. If you avhe a turnover of more than £81k you nare required to register. If your turnover is less than that you are allowed to register but are not required to.

DStepDad is a builder and not VAT registered

LulaPalooza · 20/02/2015 14:47

Sorry for typos

MirandaWest · 20/02/2015 14:47

I forget the precise limit for registering for VAT - think it's annual turnover of about £80,000. I'm not sure how much roofing work costs or how many jobs he's likely to do but that would give an idea of whether he's over the VAT threshold.

Paying tax is a separate thing - I am self employed and pay tax but am nowhere near the VAT threshold and so don't charge VAT.,

LulaPalooza · 20/02/2015 14:48

And VAT/ income/ corporation tax are all different things. Just ebcause you don't pay VAt doesn't mean you don't pay income tax.

Goodpresentideaplease · 20/02/2015 14:48

Not necessarily. You only have to be VAT registered if you turnover more than £81,000 per year. If he is a one man band, then he probably doesn't turnover more than that.

I would not discount him because of this but would ask for recommendations.

LulaPalooza · 20/02/2015 14:48

Gah. Sorry for further typos.

Goodpresentideaplease · 20/02/2015 14:49

We all crossed posts but said the same thing Smile

ChampagneTastes · 20/02/2015 14:50

Ah! Good! Sorry am completely clueless about this stuff. He seemed like a nice lad; I shall keep him in mind as I get further quotes.

OP posts:
PurpleWithRed · 20/02/2015 14:57

Not only is it legit but also he could be 20% cheaper than a bigger vat registered competitor.

Marmitelover55 · 20/02/2015 17:36

The vat saving would only be on the labour charge not materials. He will have to pay vat on those himself which he can't recover as he is not vat registered.

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