Non vat registered companies?

helpimcrap · 6 Nov 2022 at 18:28

Hi all,
Are there any issues I should be aware of if dealing with non vat registered people like plumbers or carpenters etc?

Someone is trying to get a bathroom fitted but they told them they weren't vat registered.

Would this affect warranty of the work etc? I'm being overcautious because it's a lot of money to lose potentially.

peterwalkley · 6 Nov 2022 at 18:32

No - it just means their turnover is low enough that they're not forced to register for VAT. You're getting the job 20% cheaper if they're not having to charge you VAT !

Puzzled · 6 Nov 2022 at 18:38

Loads of small businesses / sole traders won't be registered for VAT as they are under the £85,000 taxable turnover threshold.

Reputation is more important than VAT status in this scenario.

Feek · 6 Nov 2022 at 18:51

peterwalkley said:
You're getting the job 20% cheaper if they're not having to charge you VAT !

Ahahahahahahahahahahah

peterwalkley · 6 Nov 2022 at 18:53

Feek said:
Ahahahahahahahahahahah

Yeah ... I naively assumed an honest trader

They do exist ....

helpimcrap · 6 Nov 2022 at 18:53

Thank you. I told them to check with neighbours they know who have it done to check work etc.
I know about the £85k limit but I didn't want to advise for sure.

Mr Jack · 7 Nov 2022 at 07:43

peterwalkley said:
Yeah ... I naively assumed an honest trader They do exist ....

Not being vat registered also means they can't claim vat back on materials/etc so you shouldn't expect 20% anyway.

Chris Wilson · 7 Nov 2022 at 08:15

Being VAT registered myself I find the most annoying thing is buying off Ebay. Being out in the sticks means Ebay is a time and fuel saver, but so, so many traders never send a VAT invoice despite it being obvious from the number giving them feedback, and the average price of their goods that they should be VAT registered themselves.

Chasing them for a VAT invoice negates most or all of the time saving element, many don't respond the first time, if at all. I now search out traders who state a VAT invoice will be sent, or keep a list of previous sellers who I get unprompted VAT invoices from and use them even if a tad dearer.