Using Tradesmen who are not vat registered

[LOVELYDOVEY05]

I keep coming across these though they all seem to have plenty
of work.
Getting a receipt seems to be hard as well.
The bigger ones eg LTD automatically send receipts.

not being VAT registered means that your turnover is below £85,000 per year.

I work for a large VAT registered company. We don't send receipts, only invoices.

Being a LTD Company and VAT registered are seperate.

Typically if you are in the higher tax bracket it makes more financial sense to register as Ltd company as you will pay corporation tax which is lower.

To be eligible to pay VAT you need to earn over £85,000 (i think that's the threshold)

I would say both aren't linked to a company's ability to invoice or give receipts. You can do these as a sole trader, or a Ltd company.

Agree big difference between not Vat registered and cash in hand. One man bands struggle to get the turnover. Make sure you get something in writing tho, we only issue invoices and not receipts but it's trackable.

You can become vat registered below that figure if you want to, and there are advantages to doing that, but it's a fuss and an unnecessary one below £85k.

What do you need a VAT registered tradesperson for?

I’m not sure what the point of the post is either? It’d much cheaper for you if you don’t get the VAT added to your bill.

My builder wasn't VAT registered, he invoiced me for his work, daily rate X number of days, I transferred money directly into his bank account.

I paid directly to the builder's merchant for supplies, paid all the subcontractors directly and received receipts as the work was guaranteed for X number of years.

My builder's Dad was a financial advisor, this was the most tax efficient way of running the building business. He was also a limited company.