Main site > MoneySavingExpert.com Forums > Essential Money > Cutting Tax > VAT being charged twice for car repair? (Page 1)

IMPORTANT! This is MoneySavingExpert's open forum - anyone can post

Please exercise caution & report any spam, illegal, offensive, racist, libellous post to forumteam@moneysavingexpert.com

  • Be nice to all MoneySavers
  • All the best tips go in the MoneySavingExpert weekly email

    Plus all the new guides, deals & loopholes

  • No spam/referral links
or Login with Facebook
VAT being charged twice for car repair?
Closed Thread
Views: 2,285
Thread Tools Search this Thread Display Modes
# 1
Larrythelamb
Old 27-07-2012, 3:20 PM
MoneySaving Newbie
 
Join Date: Feb 2009
Posts: 5
Default VAT being charged twice for car repair?

..I've posted this as a reply to an old thread so I'm starting a new one here to be sure of a response.
'I've just picked up my car from a service, MOT and crash repair. It was a large bill and so I am going over it with a fine toothcomb. In the 'parts' section of the invoice all parts are quoted with VAT paid, i.e. the cost of the part of which 20% is VAT, so this is an over the counter price and not a trade price. The sum total of all parts, in this case 476.00, goes over to form part of the net total and then on the net total figure, 762, VAT is added to create a gross at 910 approx.
I've rung the garage, who I have used before, and they say everything is in order and that's the way things are charged these days.
I am feeling a bit ripped off, any clues?
Thanks Larry
Larrythelamb is offline
Report Post
# 2
verityboo
Old 27-07-2012, 3:35 PM
MoneySaving Stalwart
 
Join Date: May 2009
Posts: 743
Default

I'd feel ripped off too. Prices on a garage invoice are usually in my experience quoted excluding VAT as it is added at the end. HMRC offer a VAT helpline on 0845 010 9000 who you could call, it sounds as though it would be worth it in your case with the sums involved
verityboo is offline
Report Post
# 3
Mr Thrifty
Old 27-07-2012, 3:36 PM
MoneySaving Stalwart
 
Join Date: Sep 2009
Posts: 716
Default

Typical garage.

Yes, you're being ripped off. And lied to, too.

Tell them to sort it or you'll report them to HMRC, who I'm sure will become very interested in their VAT accounts.

Last edited by Mr Thrifty; 27-07-2012 at 3:38 PM.
Mr Thrifty is offline
Report Post
# 4
phill99
Old 27-07-2012, 3:36 PM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Apr 2008
Posts: 6,444
Default

You should only pay the vat once. I think they are shafting you.
Eat vegetables and fear no creditors, rather than eat duck and hide.
phill99 is offline
Report Post
# 5
Quentin
Old 27-07-2012, 3:44 PM
Deliciously Dedicated Diehard MoneySaving Devotee
 
Join Date: Nov 2005
Posts: 24,864
Default

Does the bill actually say the parts are listed including VAT?

If so, deduct the appropriate VAT from the total and just pay that, pointing out how you have arrived at the total owing and await their response.
Quentin is offline
Report Post
The Following User Says Thank You to Quentin For This Useful Post: Show me >>
# 6
Larrythelamb
Old 27-07-2012, 4:14 PM
MoneySaving Newbie
 
Join Date: Feb 2009
Posts: 5
Default

..I phoned them up when I got home and used the 29.50 charge for new oil in the 'parts' section as an example and asked if this was a price including VAT and they said it was. I'm going to get someone to go over this because I know these guys at the garage and I want to be watertight with my complaint. Thanks for your help. L
Larrythelamb is offline
Report Post
# 7
Quentin
Old 27-07-2012, 4:18 PM
Deliciously Dedicated Diehard MoneySaving Devotee
 
Join Date: Nov 2005
Posts: 24,864
Default

The person to whom you spoke may not have understood.

It seems the invoice doesn't actually state you have been charged VAT on parts twice??

If that's the case, you cannot have a "watertight" case of being charged twice - they will simply say you were misinformed over the phone.

Garage bills don't normally list parts as VAT inclusive and labour excluding VAT.
Quentin is offline
Report Post
The Following User Says Thank You to Quentin For This Useful Post: Show me >>
# 8
McKneff
Old 27-07-2012, 4:20 PM
Deliciously Dedicated Diehard MoneySaving Devotee
 
Join Date: Jun 2008
Location: north yorkshire
Posts: 32,307
Default

Add the bill up yourself manually.
Garage I went to used some silly system in that they quoted along the line the price including vat but the total at the bottom was
excluding VAT (so not a true product of the figures above)

Then VAT was added to thr figure and was then correct in that it added up to the first total.

Am I right in saying that there is no VAT on the actual MOT
No one can make you feel inferior without your consent

Last edited by McKneff; 27-07-2012 at 4:30 PM.
McKneff is online now
Report Post
The Following 2 Users Say Thank You to McKneff For This Useful Post: Show me >>
# 9
Larrythelamb
Old 27-07-2012, 4:37 PM
MoneySaving Newbie
 
Join Date: Feb 2009
Posts: 5
Default Here's the run down

Labour:
Radiator + fan motor remove and 1.00 hour + 20%VAT 65.00
Pads Remove and fit 0.50 +VAT 32.50
Labour sub total
97.50

Parts (example)
No. 64666 Fan Motor Qty 1.00 147.31 20% VAT 147.31

.................................................. ............................Parts sub total
478.98

Fixed Price
MOT Test 0.00 VAT 54.85
Full Service 20% VAT 125.00
Brake clean etc 20%VAT 12.00
Fix. Pr. sub total
191.85

Net total 762.33
VAT 141.48
Gross total 903.81


All parts have Qty, Price, VAT and Nett columns, it all adds up correctly on that score to 472.98. Plugs are charged at 5.02 ea so this is not a trade price.

Thanks, L
Larrythelamb is offline
Report Post
# 10
Quentin
Old 27-07-2012, 4:51 PM
Deliciously Dedicated Diehard MoneySaving Devotee
 
Join Date: Nov 2005
Posts: 24,864
Default

It looks like they show the VAT rate against the item (so correctly the MOT shows O vat to be charged, and everything else 20% VAt to be charged).

This VAT has been added at the end.

(Shop around for your MOT next year, lots of places do it much cheaper than you are paying)

Last edited by Quentin; 27-07-2012 at 4:54 PM.
Quentin is offline
Report Post
# 11
Larrythelamb
Old 27-07-2012, 5:18 PM
MoneySaving Newbie
 
Join Date: Feb 2009
Posts: 5
Default

Yes, the VAT is included in each item, totalled up and the VAT is again added on the grand total, just doesn't seem right. I agree, garages are not allowed to charge VAT on an MOT and they don't in this case.
Larrythelamb is offline
Report Post
The Following User Says Thank You to Larrythelamb For This Useful Post: Show me >>
# 12
timjim
Old 27-07-2012, 5:35 PM
MoneySaving Convert
 
Join Date: Aug 2011
Posts: 36
Default

Larry the example you give above does not show VAT included on the individual line but is saying vat is chargeable at the rate shown against an item

e.g No. 64666 Fan Motor Qty 1.00 147.31 20% VAT 147.31 is showing that VAT will be added at 20% to this item giving a total of 176.77
timjim is offline
Report Post
# 13
McKneff
Old 27-07-2012, 6:01 PM
Deliciously Dedicated Diehard MoneySaving Devotee
 
Join Date: Jun 2008
Location: north yorkshire
Posts: 32,307
Default

OP, i really think you are reading the bill wrong.
No one can make you feel inferior without your consent
McKneff is online now
Report Post
# 14
Larrythelamb
Old 29-07-2012, 9:47 AM
MoneySaving Newbie
 
Join Date: Feb 2009
Posts: 5
Default

OK, thanks, I suppose it's a lesson in sourcing your own car parts amongst other things, L
Larrythelamb is offline
Report Post
# 15
glasgowdan
Old 30-07-2012, 12:21 PM
MoneySaving Stalwart
 
Join Date: Dec 2008
Posts: 386
Default

Remember the garage pays VAT when they buy materials, BUT they then get that VAT back, so that shouldn't charge you VAT on things they buy from their suppliers. They CAN charge you a sourcing fee, to cover their time buying in the parts. So, the invoice should be materials x (net), labour xxx (net) = TOTAL + VAT
glasgowdan is offline
Report Post
Closed Thread

Bookmarks
 
 




Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

 Forum Jump  

Contact Us - MoneySavingExpert.com - Archive - Privacy Statement - Top

Powered by vBulletin® Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.

All times are GMT. The time now is 4:42 PM.

 Forum Jump  

Free MoneySaving Email

Top deals: Week of 19 November 2014

Get all this & more in MoneySavingExpert's weekly email full of guides, vouchers and Deals

GET THIS FREE WEEKLY EMAIL Full of deals, guides & it's spam free

Latest News & Blogs

Martin's Twitter Feed

profile

Cheap Travel Money

Find the best online rate for holiday cash with MSE's TravelMoneyMax.

Find the best online rate for your holiday cash with MoneySavingExpert's TravelMoneyMax.

MSE's Twitter Feed

profile
Always remember anyone can post on the MSE forums, so it can be very different from our opinion.
We use Skimlinks and other affiliated links in some of our boards, for some of our users.