VAT cut and new kitchen contract

tkerby

I'm getting a new kitchen installed next Monday and have entered into a contract for the installation, paying a deposit and putting the remainder on an interest free credit agreement. Given next Monday is when the VAT is reduced to 15%, do I have any hope of persuading the retailer (a major DIY store) of giving me the lower rate of vat given I have signed up to a contract

Legally, is the vat paid
- At the time I receive the product
- Or at the time of the contract
- Or at the time I 'paid' (when I signed the contract although its interesting as its on a credit agreement)

Pennywise

tkerby wrote: »

I'm getting a new kitchen installed next Monday and have entered into a contract for the installation, paying a deposit and putting the remainder on an interest free credit agreement. Given next Monday is when the VAT is reduced to 15%, do I have any hope of persuading the retailer (a major DIY store) of giving me the lower rate of vat given I have signed up to a contract

Legally, is the vat paid
- At the time I receive the product
- Or at the time of the contract
- Or at the time I 'paid' (when I signed the contract although its interesting as its on a credit agreement)

Date of supply is what matters. You are entitled to a refund of the difference if the kitchen is supplied to you on 1/12/08.

Mikeyorks

But don't expect a fortune ..... as the reduction is just mildly above £2 per £100 (assuming all the elements - including fitting (?) - are initially priced at 17.5%)

Kez100

Take a look at the rules on the HMRC website - there are examples there.

Lifeisbutadream

Rules for businesses here:

http://www.hmrc.gov.uk/pbr2008/measure1.htm

tkerby

And my question is answered at http://www.hmrc.gov.uk/pbr2008/consumerqa.pdf

It's not a huge saving in vat but on the price of a kitchen, its still a few hundred pounds and well worth having

tkerby

Looks like they are waiting on a board meeting to decide whether they want to award the vat cut to customers with existing orders. HMRC shouldn't have made this an option for companies and should have set a fixed clear procedure

tstemp

The HMRC Q & A number 6 specifically states that the company is entitled to refund the VAT and adjust their vat records, not that they are required to. It does not state that customers are entitled to anything

Lifeisbutadream

At least your kitchen was not with MFI - in which case you probably wouldnt have got a kitchen at all...