Clearview National December 2016 - Issue 181 | Page 90

BUSINESSNEWS

Cowboy Tradesmen
Home services marketplace, Plentific.com’s, latest
consumer insight has found that 4 out of 5 (79%)
of UK homeowners do not ask to see evidence
of VAT credentials when hiring a tradesman.
»»DESPITE GROWING WARIER OF
cowboy tradesmen, the majority of UK
homeowners do not check their tradesman’s
VAT credentials. The HMRC estimates that
£3.4 billion* is uncollected every year from
VAT fraud. Whilst it is legal for a tradesman
to not be VAT registered when earning under
£83,000 per annum, there are some that claim
to be VAT registered so that they can charge
customers higher prices.
Although the VAT charge can appear on the
bill, if the trade professional is not upfront with
their credentials, they can keep the 20% fee.
Consequently, the homeowner is overcharged
whilst participating in VAT fraud.
Plentific’s survey found that homeowners
aged 18-34 are twice as likely (41%) to ask to

see their trade professional’s VAT credentials
when compared to the UK’s average. Perhaps
this generation are more cost-conscious and
inclined to negotiate the final price. Londoners
too are cautious with 37% asking for evidence.
This may be a result of the higher prices for
London services, causing the homeowners to
be wary of additional expenses. Nottingham,
on the other hand, appears to care the least, as
only 12% said they would ask to see the VAT
credentials.
Despite the varied results across the UK,
however, the majority of homeowners do not
ask to see evidence of a trade professional’s
VAT credentials. Whilst it is not imperative
to confirm a trade professional’s VAT
number or even to hire a registered specialist,

homeowners are more likely to get a better
deal