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Looking to get some building work done (circa 9k) and the lowest quote from a builder by some margin is non vat registered.
Would you dismiss this quote as they are either small, not busy or cooking the books? Is VAT registration any sign of quality (size and turnover?)
Depends.
My dad De registered from vat this year and scaled back his business big time.
Only quotes on jobs he wants to do /finds interesting.
As far as HMRC are concerned there are only 3 builders in the country and they all turn over less than ten grand apiece
Where all these extensions, garages, walls and conservatories keep popping up from is a constant mystery
Pretty much any builder can register for VAT if they wish
Doesn't become compulsary until turnover exceeds £83k (this may have changed recently)
My friend is a handyman/odd job man and isn't VAT registered. His choice, he works just enough to pay for riding bikes and running his house so well below threshold and simply can't be bothered with the admin hassle.
Would you dismiss this quote as they are either small
Well, they are small, if £83k maximum is small
, not busy
Unlikely. Registering and deregistering for VAT is a PITA, unlikely to do it every time business goes quiet. And there are rules about registering based on predicted turnover so they would have to expect to be quiet for quite a while. Also, what is busy? One busy chap could still be well below threshold, a firm of ten men still below threshold is not busy.
or cooking the books?
Much easier to commit VAT-fraud if you are registered. However, his VAT return may raise questions if it doesn't tally with declared income on his tax return/accounts/etc.
Is VAT registration any sign of quality (size and turnover?)
It is an indication of size and turnover but has bugger all to do with quality. Size and tunrover may be an indication as to the longevity of the firm and and guarentees but no doubt BHS's creditors thought that.
.
So don't pay too much attention to the VAT status. Pay much more to recomendations, or lack thereof, and looking at previous work
He might want you to pay for the materials directly - which might be a problem if there are issues with them. Or he might just be starting out.