how do builders fiddle via Ltd Co ?

[diesel]

Currently have a interior contracting renovating our bathrooms out.
Chap has his own Ltd company, which he is relocating one and when giving us a written quote was listed for another company.
quick search under his name lists him as director for more than 10+ companies. Most of these companies seem to have little assets and big liabilities.
Anyway got the chap to do work as he knows his stuff....I note he pays his 1 worker cash, buys his stuff using cash.
first cheque was to his Ltd Co, now asks if 2nd payment can be to his wife!

how do these builders/plumbers fiddle their accounts to get away with such out of interest?

[Doggy Styles]

Creatively. It's what made Britain great.

[AtW]

how do these builders/plumbers fiddle their accounts to get away with such out of interest?

Why do you think they get away with it?

The very same chap will probably be posting in BN666 thread on buildersuk.com in the near future...

[Zippy]

He's an Amazon wannbe?

He uses his other companies to sell on stock and labour at inflated prices, so doesn't make much profit - rather like the energy companies? Allegedly.
Presumably the missus is a fully qualified CORGI fitter.

[diesel]

Why do you think they get away with it?

The very same chap will probably be posting in BN666 thread on buildersuk.com in the near future...

well why would they keep opening and closing companies?
whats BN666?

[vetran]

first cheque goes to company and fails to cover much more than the cost of materials, invoice for which of course he withdraws cash to pay for. The profit goes to his wife in second cheque.

Taxman sees a job (note quote doesn't exist for that company),paid invoice and no profit. sooner or later the builder winds up the other companies and goes bankrupt. wife having previously resigned as director.

Next morning he starts up again but can't get credit so pays cash for goods from previously burned suppliers.

Acquaintance of mine used to do it all the time.

Its all such a mess the taxman doesn't bother.

[diesel]

Its all such a mess the taxman doesn't bother.

maybe a mess but I bet on average its more money being fiddled than I make as a genuine Ltd company contractor...surprised tax man does not get past it

[vetran]

maybe a mess but I bet on average its more money being fiddled than I make as a genuine Ltd company contractor...surprised tax man does not get past it

yours has an easy paper trail!

its not difficult to see all the lovely moolah they can take off you.

[Jeebo72]

Currently have a interior contracting renovating our bathrooms out.
Chap has his own Ltd company, which he is relocating one and when giving us a written quote was listed for another company.
quick search under his name lists him as director for more than 10+ companies. Most of these companies seem to have little assets and big liabilities.
Anyway got the chap to do work as he knows his stuff....I note he pays his 1 worker cash, buys his stuff using cash.
first cheque was to his Ltd Co, now asks if 2nd payment can be to his wife!

how do these builders/plumbers fiddle their accounts to get away with such out of interest?

Another reason so many builders have many LTD companies is that when something goes wrong, and you need to take them to court, the copmany you take to court will have zero money in it...

[diesel]

Another reason so many builders have many LTD companies is that when something goes wrong, and you need to take them to court, the copmany you take to court will have zero money in it...

yeah I guessed that...wish I coud withdraw all as cash and do the same with agencies! get them to pay in my kid accounts!

how does the builder cover payments to a wife's account, surely hmrc could question such payments if investigated?