Insurance Question

[ericblack4boss]

Anyone an expert on car insurance, I had an accident last summer when someone hit me they accepted blame and their insurance paid cor repairs but now company that carried out repairs wants me to pay the VAT on repairs, surely I am not liable for that

[Tommy]

Anyone an expert on car insurance, I had an accident last summer when someone hit me they accepted blame and their insurance paid cor repairs but now company that carried out repairs wants me to pay the VAT on repairs, surely I am not liable for that

Assuming it's not your company vehicle and you are vat registered then it's up to

the other party's insurer to pay in full including the vat element.

[ericblack4boss]

Aye Tommy I am self employed and use the motor for work but it's not down in my business name just find it strange that I should be liable for the VAT on repairs.

[spamspamspam]

Aye Tommy I am self employed and use the motor for work but it's not down in my business name just find it strange that I should be liable for the VAT on repairs.

 

Cant see how they can be charging it to you either.

 

Tell them to deal with the insurance.

[tutankamun]

Anyone an expert on car insurance, I had an accident last summer when someone hit me they accepted blame and their insurance paid cor repairs but now company that carried out repairs wants me to pay the VAT on repairs, surely I am not liable for that

From HMRC website:

 

Reclaiming VAT on insurance claims

If you have an insurance claim that involves goods or services that are liable for VAT, you'll normally be invoiced directly for the VAT element if you're VAT-registered. For example, a garage that carries out repair work on your car will invoice the insurance company for the cost of the work and parts excluding VAT. They'll invoice you separately for the VAT.

You can reclaim all the VAT on this invoice so long as the car is used for business purposes to some extent. This is because the work that's been done is part of the cost of running and maintaining your vehicle.

As part of settling your claim, your insurance company might supply you with other items apart from the repair work. For example, they may replace an accessory that was stolen or damaged. In some circumstances they might give you an invoice for the VAT on the item. You can only reclaim the VAT on the replacement if you were able to reclaim the VAT on the original purchase.

 

http://www.hmrc.gov.uk/vat/managing/reclaiming/motoring.htm#7

[Dom Sullivan]

Aye Tommy I am self employed and use the motor for work but it's not down in my business name just find it strange that I should be liable for the VAT on repairs.

Are you vat registered?

[ericblack4boss]

Aye I am

[Dom Sullivan]

Aye I am

You'll need to pay it then claim it back from our good friends at HMRC.

 

Its merely a cash flow issue for you as you will be able to reclaim the full amount so not a cost to you.

 

It's a bugger if you pay it at the start of a vat quarter though as you'd have to wait three months to recover from HMRC.