On 2006-11-23 16:20:33 +0000, Guy King said:

The message
from "Clive George" contains these words:

I don't get this argument. They haven't taxed people making their houses safer.

Yes they have. Where before you could do the work yourself, and thereby
not pay tax on the work 'cos it's DIY, now you have to[1] employ someone
else to do it. Income tax, National Insurance and VAT are then payable
on the money that changes hands.

In respect of VAT, not necessarily.

I agree that someone operating outside the system would not want to
register for VAT any more than join a trade association in order to
self certify - either or both brings him into contact with officialdom.

However, if he purchased materials, he would have paid VAT then, just
as now, and would pass that on to the end customer.

The difference would be that if his annual revenue is greater than the
VAT threshold, he would now have to register for VAT (whereas before he
might have ducked it). The effect to the customer would be the VAT on
his labour.

OTOH, if he is below the threshold, it won't have made a difference.





[1] OK, I know that it's possible to get round Part P by doing it
through Building Control but many people either don't know that or can't
be arsed.