[652025]

Have been asked to pay vat on car repair that’s gone through third party was not informed before repair that I would need to pay vat

[TC1474]

Originally Posted by 652025

Have been asked to pay vat on car repair that’s gone through third party was not informed before repair that I would need to pay vat

If you have been involved in a non fault crash and the bill is being picked up by the third party, then it is down to that third party to pay all costs including any VAT due.

Your solicitors (or insurers) should be aware of this and should have pointed this out to the third party.

The claims procedure is designed and aimed to put you back into the financial position you would have been in but for the negligence of he third party, so it is not your job to pay any VAT.

Speak to your legal representative and if they still insist that you are liable then get them to commence recovery of your uninsured losses or if they still will not do anything, speak to the Insurance Ombudsman. Insurance – Financial Ombudsman service

[Drivingforfun]

Was the third party authorised by the insurance co?

It could be that the company wouldn't have paid VAT if they repaired it on their terms... going privately obviously incurs VAT... I'm wondering if you unwittingly accepted (small print etc?) to pay the VAT in return for being able to choose where the repair is taken place

[TC1474]

Originally Posted by Drivingforfun

Was the third party authorised by the insurance co?

It could be that the company wouldn't have paid VAT if they repaired it on their terms... going privately obviously incurs VAT... I'm wondering if you unwittingly accepted (small print etc?) to pay the VAT in return for being able to choose where the repair is taken place

It doesn't matter whether it was insurance approved or not, the fact is that if it was a non fault crash, the OP is not liable for any costs including VAT, so if the repairing company could have avoided VAT (which I doubt in any case) that is there problem and not the OP's

[Drivingforfun]

@TC1474 I'm no expert on insurance but it was just a thought, from a business point of view. If the insurer did the repair in-house and no bills changed hands there would be no VAT, but obviously if the customer wanted to choose another garage he would have been charged VAT

Like I said I'm not an expert, it might be the customer has the right in law to choose who does the repair, in which case they're not doing him a favour and my VAT point is irrelevant

[Nick]

I have a vague recollection of this kind of thing being commonplace in motor claims when the insured is VAT registered - is the car a company car? The only surefire way to find out the reasons is to speak to the insurance company as to where this is coming from. It's not something that happens on every claim, and previous responses are spot on in this respect - but it could be to do with the element I mention here.

[652025]

After my vat query yesterday now received email from Komodo claims requesting another vat payment on top of the one I’ve payed today because they make a margin on repairs told them no further payments will be payed as I’ve already paid vat on repairs any comments

[TC1474]

Originally Posted by Drivingforfun

@TC1474 I'm no expert on insurance but it was just a thought, from a business point of view. If the insurer did the repair in-house and no bills changed hands there would be no VAT, but obviously if the customer wanted to choose another garage he would have been charged VAT

Like I said I'm not an expert, it might be the customer has the right in law to choose who does the repair, in which case they're not doing him a favour and my VAT point is irrelevant

The law changed about 10 years ago that insurance companies cannot force you to use their in house repair shops, you are free to use anyone you wish and the insurers have t honour this, just in the same way as if you have legal expenses insurance, you are allowed to use whatever law firm you wish and the insurers cannot withhold payment like they did in the old days hence who so many cases were dealt with on a no win no fee basis (Conditional Fee Agreement)

So to sum uo, the claimant has the right in law to use whichever repair firm they wish as well as whatever law firm they wish, they no longer have to pander to the insurance companies and their crony dodgy side operations.

[Rolebama]

I once worked for a company that specialized in insurance repairs. So dodgy that some of their stunts defied belief. I think the worst one was when I was driving a car back after a front-end repair, I had to do an emergency stop. As I pulled away there was a horrible noise from the front. On inspection, I discovered the front had dropped because the front cross-member, which should have been welded, had been pop-riveted in place. I left the car where it was and got a bus back to the workshop. When I got there I explained to the owner in no uncertain terms why I was quitting, and I wanted all my pay sorted there and then.

[Beelzebub]

Originally Posted by Nick

I have a vague recollection of this kind of thing being commonplace in motor claims when the insured is VAT registered - is the car a company car? The only surefire way to find out the reasons is to speak to the insurance company as to where this is coming from. It's not something that happens on every claim, and previous responses are spot on in this respect - but it could be to do with the element I mention here.

Yes, I also have a vague recollection of that (40 years ago!).
IIRC insurers cannot reclaim VAT, and pass it on to the claimant if he is VAT-registered.

[Nick]

Originally Posted by TC1474

The law changed about 10 years ago that insurance companies cannot force you to use their in house repair shops, you are free to use anyone you wish and the insurers have t honour this, just in the same way as if you have legal expenses insurance, you are allowed to use whatever law firm you wish and the insurers cannot withhold payment like they did in the old days hence who so many cases were dealt with on a no win no fee basis (Conditional Fee Agreement)

So to sum uo, the claimant has the right in law to use whichever repair firm they wish as well as whatever law firm they wish, they no longer have to pander to the insurance companies and their crony dodgy side operations.

I seem to think that the whole deal about choosing who you wanted to repair the car was possible even 25 years ago when i used to work in this area - if a customer wanted to choose their own repairer it was always completely fine - the estimate would have to be approved by an engineer but unless it was clearly inflated, as would often be the case once it was known the insurance was being used, it would be fine.

From a VAT perspective it doesn't really matter who repairs the car, and whether it's one of the insurers "in-house" repairers - if the repairer is registered for VAT there will be VAT to pay.

[TC1474]

Originally Posted by Nick

I seem to think that the whole deal about choosing who you wanted to repair the car was possible even 25 years ago when i used to work in this area - if a customer wanted to choose their own repairer it was always completely fine - the estimate would have to be approved by an engineer but unless it was clearly inflated, as would often be the case once it was known the insurance was being used, it would be fine.

You are right, however it was about 10 - 12 years ago that it was actually written into law, with the biggest change coming in the form of who can legally represent you as it was always the case that you only got your LEI policy honoured if you used the insurers own in house law firms, otherwise you would have to go down the CFA route (which at the time was the better option anyway)

But with freedom of choice now written into law it means that insurers can no longer wiggle out of their financial obligations.

[olduser]

Originally Posted by 652025

After my vat query yesterday now received email from Komodo claims requesting another vat payment on top of the one I’ve payed today because they make a margin on repairs told them no further payments will be payed as I’ve already paid vat on repairs any comments

Forward all claims in anyway related to the insurance claim to your insurers.
It is better to not respond to people requesting payment from you or just refer them to your insurers.
The deal between you and your insurers is, if you make a valid claim the insurers will repay all the costs less excess, simples!
Therefore you should not be out of pocket other than the excess.

I don't understand why Komodo are involved?
If they are part of any legal cover I would not expect any costs, and I would forward a copy of what you have already paid (VAT) to your insurers asking them to reimburse you.

If you have involved Komodo outside the policy, you need to refer to their terms and conditions.

[markmorales]

Originally Posted by 652025

After my vat query yesterday now received email from Komodo claims requesting another vat payment on top of the one I’ve payed today because they make a margin on repairs told them no further payments will be payed as I’ve already paid vat on repairs any comments

hi..... If their fee is part of the cost of the repair, then VAT is already taken out of the amount you paid. It doesnot make sense to add more VAT on top of that. It was already on the original bill.....

[markmorales]

@652025
hi....If their fee is part of the cost of the repair, then VAT is already taken out of the amount you paid. It doesn't make sense to add more VAT on top of that. It was already on the original bill....

[markmorales]

Originally Posted by Drivingforfun

Was the third party authorised by the insurance co?

hi.....It could be that the company wouldn't have paid VAT if they repaired it on their terms... going privately obviously incurs VAT... I'm wondering if you unwittingly accepted (small print etc?) to pay the VAT in return for being able to choose where the repair is taken place

It looks like the insurance company did not approve the repair business, so they did not pay for the VAT. When you go private, VAT normally goes up. You might have agreed to pay VAT without knowing it when you choose where the repair was done, especially if it was in the fine print. You could call the insurance company to be sure....

[lornaluxe]

Originally Posted by 652025

After my vat query yesterday now received email from Komodo claims requesting another vat payment on top of the one I’ve payed today because they make a margin on repairs told them no further payments will be payed as I’ve already paid vat on repairs any comments

hiiii... You already paid VAT on the repair, therefore Komodo shouldn't charge VAT on their profit again. They need to say what the second VAT is for. If the extra payment isn't valid, you can refuse it.

[Donaldmaid]

I had a similar issue and found that if you're not VAT registered, the insurer typically covers the VAT part too, as it's part of the total repair cost.