Did not want to read and run. I asked chat gpt and this is what it came up with:
You’re not an idiot — this is genuinely opaque, and most “check Companies House” advice is lazy shorthand. I’ll break it down in plain English and tell you what actually matters (and what doesn’t) when you’re hiring a builder for a domestic extension in the UK.
Short version first:
👉 Companies House is a risk filter, not a trust guarantee.
You’re looking for red flags, not “proof they’re good”.
Step 1: What type of builder are they?
Before you even look at accounts, check what you’re dealing with:
1️⃣ Limited company (Ltd)
- Appears on Companies House
- Separate legal entity
- If it collapses, you can’t easily chase the director personally
2️⃣ Sole trader
- Often won’t appear on Companies House
- Much more common for good local builders
- Due diligence looks different (insurance, references, contracts matter more)
⚠️ Important:
A Ltd company is NOT safer than a sole trader by default.
Some of the worst cowboy builders use Ltd companies precisely because they can walk away from them.
Step 2: What you should ACTUALLY check on Companies House
When you search a builder’s Ltd company, focus on these 6 things only:
✅ 1. How long has the company existed?
Look for:
- Ideally 3+ years
- 5+ years is a strong positive
Red flags:
- Company formed in the last 6–18 months
- Especially if the director has run other dissolved companies
Why it matters: Fly-by-night builders often close one company and open another.
✅ 2. Director history (this is BIG)
Click the director’s name → “Appointments”
Good signs:
- One company
- Long-running
- No dissolved trail
Red flags:
- Multiple dissolved companies
- Pattern of companies lasting 1–3 years then closing
- Several companies with similar names (e.g. “Smith Build Ltd”, “Smith Building UK Ltd”)
🚨 This matters more than the accounts.
✅ 3. Company status
You want:
- Active
- Accounts and confirmation statements filed on time
Red flags:
- Overdue filings
- “Proposal to strike off”
- Repeated late filings (shows disorganisation at best)
✅ 4. Accounts: what to look for (simple version)
Ignore the scary spreadsheets. You only need to answer three questions:
a) Are they filing
micro-entity
accounts?
- Totally normal for builders
- Doesn’t mean they’re small or bad
b) Are they insolvent?
Look for:
If you see:
- “Net liabilities” or “(£X)” in brackets → 🚩
A small positive number is fine. Builders don’t hold lots of cash.
c) Do the numbers look vaguely consistent?
- £100k turnover one year, £10k the next, £200k after → questionable
- Rough stability is what you want
⚠️ Do NOT expect big assets or cash reserves
Most builders:
- Lease vans
- Rent equipment
- Have thin margins
Big assets ≠ trustworthy builder.
✅ 5. Charges (loans against the company)
Under “Charges”:
- None or historic = fine
- Current charges = not necessarily bad
But:
- Multiple lenders
- Recent emergency finance
- → mild warning sign
✅ 6. Registered address
Normal:
- Accountant’s office
- Home address
Red flag:
- Frequent changes
- Virtual office + no physical presence + new company
Step 3: What Companies House DOESN’T tell you (but matters more)
Honestly? These are often more important:
🔧 Current jobs you can visit
Ask:
“Are any of your current or just-finished jobs local that we could see?”
A good builder:
- Will happily show you
- Might even introduce you to the client
A bad one:
- Makes excuses
- Only shows glossy photos
📞 References — but ask the RIGHT questions
Don’t just ask “were they good?”
Ask:
- Did the final cost match the quote?
- How did they handle problems?
- Was the site tidy?
- Would you use them again without hesitation?
Listen for tone, not words.
📄 Contract + payment structure
Massive green flag if they:
- Use a written contract
- Stage payments tied to milestones
- Ask for small deposit only (5–10%)
🚩 Red flags:
- Large upfront payments
- Cash discounts
- “Don’t worry, we don’t need paperwork”
Step 4: About “builders who can start straight away”
You’re right to be cautious — but nuance matters:
Red flag:
- “I can start Monday” with no site visit, no detailed quote
Green-ish explanation:
- A job delayed
- A cancellation
- They’re between phases
Ask why — confidence + specifics are reassuring.
Step 5: A genuinely good plain-English resource
You’re not imagining it — most guides are awful.
These are actually decent and UK-specific:
- Which? Trusted Traders – especially their questions to ask builders articles
- Citizens Advice – boring but accurate, especially contracts & payments
- Federation of Master Builders (FMB) – their guidance pages are better than their membership badge
(Builder membership badges alone mean nothing — guidance > logos.)
Bottom line (this is the part most lists won’t tell you)
If I had to rank trust signals for a kitchen extension:
1️⃣ Seeing current/finished work
2️⃣ Quality of references
3️⃣ Sensible contract & payment terms
4️⃣ Director history on Companies House
5️⃣ Accounts being solvent
6️⃣ Badges / memberships (last place)