STAG BUILDERS OF HERTFORDSHIRE
Value Added Tax (VAT)
It is widely recognised that paying 20% VAT can feel like an unwelcome obligation, and this sentiment is understandable. No customer is eager to see an additional 20% added to the subtotal of a quotation or invoice.
This perception has contributed to a long‑standing stereotype that builders prefer cash payments so they can offer cheaper prices by avoiding tax responsibilities. While there may be some truth in how this stereotype developed historically, the industry has changed significantly. Many builders now operate cashless systems, especially as most purchases today are made by card, and tax evasion carries severe penalties, including substantial fines and potential custodial sentences.
In addition, modern construction contracts require clear financial records. For this reason, most reputable builders favour bank transfers, as they provide a transparent and traceable record of all transactions and ensure compliance with the terms set out in the contract.
At Stag Builders of Hertfordshire, we understand the frustration and financial pressure that VAT can place on your budget. However, maintaining a clear and traceable paper trail for all works carried out is essential. It protects you in the event of defects, disputes, or any legal disagreements that may arise, ensuring you have full evidence of the services provided, while also keeping our accounting practices accurate, transparent, and fully aligned with HMRC requirements.