I’ve found out my builder is not paying taxes on the work he’s doing for me. Will I get into trouble if I don’t tell HMRC?
T.F., by email.
Dean Dunham replies: No, you won’t get into trouble with HMRC for not reporting your builder’s tax affairs – although the situation is not without risks.
As the customer, you have no legal obligation to police whether tradespeople are paying their taxes correctly.
Your responsibility is to pay for the work – what the builder does with that money is between him and the taxman.
But that’s not the end of the issue.
Concerns: A reader is worried they could end up in trouble with HMRC because their builder is not paying tax
First, how do you know he’s not paying tax? If he’s told you directly or offered you a discount for cash in hand with no receipt, that’s a massive red flag.
This builder is operating in the black economy, and while that’s his problem legally, it creates serious risks for you practically.
If something goes wrong with the work, you’ll have no paper trail to prove what you paid or what was agreed.
No invoice means no proof of contract if you need to take him to court. Your home insurance might not cover botched work done by unregistered traders.
And if he disappears halfway through the job, you’ve got no comeback whatsoever.
By contrast, if you pay with a debit or credit card, not only do you have proof of payment, but you will also have protection under the chargeback scheme or Section 75 of the Consumer Rights Act if something goes wrong.
I should also mention that if you were to pay the builder with the intention to help him dodge tax or in the knowledge that this is why he wanted to be paid in cash, you would technically become an accessory to his crime. It’s therefore best to stay well clear of this.
Held to ransom over faulty laptop
We bought a refurbished laptop with a 12-month guarantee, which broke five months later.
The company refuses to send a replacement unless we pay £12.50 postage, but you previously advised us that it cannot do this.
We have written and cited the Consumer Rights Act, but it is not budging. What can we do now to stand up for our rights?
SL., By email.
Dean Dunham replies: I stand by my advice: the seller cannot charge you £12.50 return postage, and their refusal to pay it is a breach of contract. Section 23 of the Consumer Rights Act 2015 is clear.
When you require a repair or replacement, the trader must do so ‘without significant inconvenience to the consumer’ and ‘bear any necessary costs incurred in doing so (including in particular the cost of any labour, materials or postage)’.
By refusing to pay return costs, they’ve breached the Act, which means you’re entitled to abandon the replacement and demand a full refund instead.
Send them a Letter Before Action stating: ‘Your refusal to cover the £12.50 return postage breaches Section 23 of the Consumer Rights Act 2015.
You have seven days to either pay the return cost and send a replacement, or provide a full refund. If you fail to comply, I will pursue a full refund through the courts.’
If they still refuse, you have two options. If you paid by card, contact your bank or card provider and make a chargeback claim.
State the company is in breach of contract under the Consumer Rights Act, they refuse to cover legally required return costs, and you’re claiming a full refund.
If you didn’t pay by card, file a Money Claim Online for the laptop’s full purchase price.
The court fee is £25 for claims under £300. Attach all correspondence showing you’ve given them chances to comply.
To pursue your claim in the Small Claims Court, visit gov.uk/make-court-claim-for-money and complete the online Money Claim form, which costs between £25 and £455 and allows you to issue proceedings against the company to recover your losses.
Most companies cave when faced with court action because they know the law is against them.
The Act explicitly prohibits passing return costs to consumers, and judges have zero tolerance for this nonsense. Don’t back down. They’re banking on you giving up. Prove them wrong.
