boiler scrappage scheme

lctq2

Hi,here is a topic you may like to get your teeth into. I have applied for a £400 grant to be taken off the cost of replacing my boiler. However the scheme rules state that I will be reimbursed £400 after I pay the installers bill which includes the VAT. The end result is that I will be paying VAT on a government grant. This cannot be right. If the grant was from a private source I could accept it but it is a government grant and as such cannot be subject to tax. I have argued this point with all of the relevant parties and they disagree. I feel sure I am right and if so would present an embarrassing problem for the government costing thousands. The grant should be taken off the installers bill before he calculates the VAT. What do you think?

diable

Don't claim your £400 then it won't be a problem. I am just happy to be able to claim the £400 in the first place.

I stick to "never look a gift horse in the mouth"