Loss Assessors fees

whizzkid001

We used a loss assessor to handle a household insurance claim for us. The fees agreed at the start were 10% of the eventual payout + expenses, which I believe to be fairly standard. However, having just sent us a statement, he's not only charged us the 10% & expenses, but 17.5% VAT on top.

Is this correct? That effectively makes it a 27.5% fee - not the 10% I was expecting them to take!

uk-tyler

Surely he is only charging VAT on his 10% bill?
So 11.75%?

geri1965_2

Is he VAT registered? Most of them are pretty small companies, I wouldn't have thought their turnover meant that they were VAT registered.

lisyloo

That effectively makes it a 27.5% fee

That's incorrect.
The 17.5% should be on top of his 10% fee, so it should be 11.75%.

Did you get given papaerwork for the agreement with him.
What does it say on there.

Quentin

geri1965 wrote: »

Is he VAT registered? Most of them are pretty small companies, I wouldn't have thought their turnover meant that they were VAT registered.

Turnover is irrelevant.

A business can choose to register for VAT irrespective of whether or not their turnover meets the level for compulsory registration.

vaio

geri1965 wrote: »

Is he VAT registered? Most of them are pretty small companies, I wouldn't have thought their turnover meant that they were VAT registered.

I thought the limit was £70k turnover which means even one man band firms must register.

mikey72

If he didn't specify 10% + vat initially, it ahouldn't be added on later, unless you are a business yourself.
Dealing with the public, if vat is not mentioned upfront, it should be assumed it is included.

id99999uk

Some loss assessors are a great help to policyholders but if he is charging 27.5% that is outrageous , did he get the contractors paid direct ? or was the full claim settled as a cheque

Quentin

Read the thread - he hasn't charged 27.5% at all!

id99999uk

I did read his thread, he has not confirmed he was NOT charged 27.5%, I am aware of how the VAT should have been charged but it was not confirmed if paid 11.75 or 27.5 as originally stated on his post. If I missed something I apologise

Quentin

For whatever reason the OP has deleted a subsequent post he made confirming the figures he was charged (which did amount to the "correct" 10% + VAT)!

All that remains was to see if the original "deal" mentioned the fee was "+ VAT"