An official invoice with home address is better than a letterhead which can be printed to say whatever someone wants.

VAT registration is not obligatory until a company turns over more than £70000 in a year (the 2010 threshold).

A VAT number is definitely a sign of credibility, but many top craftsmen work alone, and don’t need to register.

Be suspicious if a VAT registered company offers to do a job cheaper by not charging VAT. Not being alarmist, but the VAT man is omniscient and has great powers to act against both parties acting fraudulently!

Public Liability is an absolute essential for any business and in many industries it may be impossible to trade without it. It protects a company from claims made against it from any third party (other than an employee) be it an individual or corporate concern, following damage to property or bodily injury.

Many companies, when appointing sub-contractors insist on the sub contractor having public liability insurance. This can be for varying limits of indemnity, usually this is £1,000,000 or £2,000,000 any one event although increased limits of indemnity of £5,000,000 and higher can be arranged.

The Employers Liability Act 1969 makes it compulsory for an employer to provide Liability cover for work related accidents/illness to their staff or any person under their direction (including freelance and sub-contractors). This act was updated in 1998 and states that a minimum indemnity limit of £5,000,000 any one event must be held, however the insurance industry generally grants a limit of £10,000,000 as standard.

Although this is a compulsory insurance there are a couple of exemptions; If you are the sole employee of a limited company and own at least 50% of the share capital or if you are a sole trader and do not employ anyone except for close family members. We would however suggest you always seek advice on these in case the law changes.

Everybody is responsible for ensuring their own safety and the safety of the public. Companies with less than 5 employees do not need a formal H&S policy, more than 5, it is obligatory.

Qualifications can be a useful indicator of skill levels and competence. City & Guilds Advanced Craft, Degrees in Interior Design, these indicate someone has gone through a serious training process.

Certain trades require certification, especially electrical and gas contractors

10-day skills courses have their place, but are no substitute for the traditional time-consuming pathway taken by most masters of their craft or profession. Some examples:

I’d hesitate to dismiss anyone out of hand because they have no qualifications. One of the best decorators I know didn’t make the grade in class. On the other hand, be aware of tradesmen quoting 10-day diplomas in paperhanging or plumbing and calling themselves experts.

Membership of an association tends to be a signal that someone has paid a subscription, and does not necessarily prove someone’s ability to deliver the service claimed. However there are some associations with teeth!

Evidence of recent work should be obligatory. At least ask for a phone number of someone who vouches for the company’s work. Or better still, go have a look in person.

Find out what the local suppliers think of a company. Notes saying a business is behind on payments…!

CCJs reflect a company’s attitude to other people’s money.

That should ring an alarm bell! I can’t imagine anything but the worst negligence with a hint of fraud landing a company on the TS lists.

Written quotes should be obligatory. By all means discuss numbers on the back of a cigarette packet, but don’t let any work start till a formal price has been presented in writing and signed off. This protects both parties.

There is no reason why small jobs cannot be nailed down to a fixed no-quibble price.

As long as it is presented fairly, there should be no problem with a company agreeing to a testimonial on the internet. They are so helpful for all concerned.