As new figures show that more than half of homeowners admit to paying tradesmen in cash in order to avoid VAT, a practice that is costing the Treasury £2 billion per year, the Build Show has reiterated its calls to lower VAT on housing renovations by five per cent.
The Cut the VAT Campaign, which is targeting all three major political parties, recently issued a report outlining the massive benefits of a tax reduction on boosting the economy and reducing UK carbon emissions. It claimed that reducing VAT would create 42,000 full time jobs in the construction industry and could save almost 240,000 tonnes of CO2 by 2020.
Speaking on BBC Radio 5 Live last week Brian Berry, Chief Executive of the Federation of Master Builders (FMB) highlighted that the public are ripped-off by rogue traders to the tune of £170 million per year. The majority of these tradesmen are those who accept cash-in-hand payments to avoid taxation. He argued that the best method of protecting the public is a cut in VAT, as it will encourage the use of legitimate builders.
Paul Godwin, Managing Director of the Build Show, commented in response:
“We want what’s best for the industry and it is clear to us that a cut in VAT would benefit everyone: the government through a boost to the economy and reduction in carbon emissions; the builder with an increase in work and the public with lower bills and guaranteed work from a qualified tradesman. We’re proud to support the campaign and would encourage anyone else that feels the same way to contact their local MP and help highlight the cause!”
Brought to market by the organisers of the award winning FIT Show (Fabricator Installer Trade Show), the Build Show will take place at the Birmingham NEC from Tuesday 28th to Thursday 30th April 2015, providing a wealth of business development and networking opportunities.