Vat avoidance used by building companies

[vanderlay1]

We are currently considering having some building work done on our property. We will have a contract with a project management company and they sub-contract the work to the builder. The proposed schedule of payments from the project management company has certain payments down as having to be paid in cash. They say this is so they can avoid charging VAT?
Does anyone know the reasoning behind this? Is it legit?
Any insight would be really great.
Regards

[JB2]

NO it is not legit! If you want to ensure that you stay on the right side of the law, demand a VAT invoice for very payment you made, as well as a numbered receipt.

[vanderlay1]

Presumably if I don't go along with it they will charge VAT on top.

[King_Maker]

No - it appears to be fraud.

And, anyone party to it is likely to be spending some time at HMP.

[weegirl]

Yep, sounds that they are avoiding paying VAT by putting the cash into their back pocket. I'm surprised they are being so brazen as to put in writing though. Unbelievable.