Please note that this website has a UK government accesskeys system.
If a trader doing work for you offers to accept a cash payment to save you the VAT on a job, then they're probably acting unlawfully. What's more, they might not give you a receipt or any other paperwork. This might cause you problems if anything needs putting right.
If a business supplies more than £77,000 of goods or services in a year, and those goods and services should have VAT charged on them, then they have to register for VAT.
Once registered for VAT, they then have to charge VAT where it is due. Nearly all goods and services are liable for VAT, although in a very few cases the rate is reduced or even zero - and sometimes you can reclaim it - such as if you're building your own home.
And finally, once they've charged you VAT, they have to pay the VAT over to HM Revenue & Customs (HMRC).
Some people deliberately avoid registering for VAT and by doing so gain an unfair advantage over their competitors. Others don’t pay the VAT over to HMRC after collecting it from you.
You might know that a business isn't declaring all the VAT they're charging. Or they might make you suspicious if they do one or more of these things:
If you suspect a business isn’t charging or paying VAT you can report this online using the link below, or by calling the free Customs Hotline. You don't have to give your name.
The Customs Hotline contact details below also explain how you can report suspected tax evasion by email, post or fax.
Provided by HM Revenue and Customs