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we've had floorers and landscapers in who were more than happy to provide receipts etc. and were upfront about their tax affairs when asked. but yer right - they could be bullshitting for all i know. still - better than trying to get work done on the cheap by colluding with obvious tax dodgers. a red flag if ever there was one.
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Isn't the VAT threshold something like £85k a year turnover? I'd have thought that a large proportion of self-employed / small business traders don't need to charge VAT.
The most scam is those that charge it, but don't pay it.