mechanic charges!

LandyAndy

colino wrote: »

OP you would really have a fright if you stopped to realise that the garage will have got a discount on the parts too!

Will they get the VAT back on that?:rotfl::rotfl:

RegWorts

Is it any different from paying for Goods plus Post and Packing...then paying VAT on the whole lot including the cost of the stamp?

It`s not fair, defies logic....but is how the VAT collection system works

mikey72

It is, in the sense that the part have simply been marked up and re-sold by the garage.
If the op had supplied them, and they fail, the garage will simply advise the op they will have an expensive bill to look forward to.
If the garage suplly and they fail, the op can tell the garage they have an expensive bill to look forward to.

Hammyman

vax2002 wrote: »

£120 to fit a timing belt ?
What car was this on ?
If it took him anything longer than an hour on a standard make car then I can see why he works for himself, he would be sacked at a decent garage.

I'll pay you an hours labour to come change the timing belt on my wife's FTO. It'll be a deal, it'll be a steal, it'll be the bargain of the century. Its certainly less time than Mitsubishi's workshop manual states. It'll probably take you most of that just to take off the parts to get to it.

marlot

RegWorts wrote: »

Is it any different from paying for Goods plus Post and Packing...then paying VAT on the whole lot including the cost of the stamp?

It`s not fair, defies logic....but is how the VAT collection system works

There is logic.

Companies were selling things for £1 plus £10 'postage', so artifically reducing the VAT take.

Simple fix was making the whole bill VAT-able

mikey72

That and packaging is a service, so that's taxable.

atrixblue.-MFR-.

mechanic pays 20% vat on his account for purchasing your parts to the motor factors, mechanic DOWN 20% mechanic adds a small markup for downing tools going to shop collecting parts just because its 2 doors away doesnt mean he walked right in a right back out in 10 seconds, if the shop didnt have the stock he would have had to wait a with a ramp occupied by your car.

so mechanic is down on money because he's paid for your parts inc VAT, mechanic then gets his cash and VAT back when he charges you VAT your not paying twice, your paying ONCE.

Hammyman

atrixblue.-MFR-. wrote: »

mechanic pays 20% vat on his account for purchasing your parts to the motor factors, mechanic DOWN 20% mechanic adds a small markup for downing tools going to shop collecting parts just because its 2 doors away doesnt mean he walked right in a right back out in 10 seconds, if the shop didnt have the stock he would have had to wait a with a ramp occupied by your car.

so mechanic is down on money because he's paid for your parts inc VAT, mechanic then gets his cash and VAT back when he charges you VAT your not paying twice, your paying ONCE.

Wrong. You missed an important step out.

Mechanic buys part from motorist shop which costs £120 which is inclusive of VAT
Mechanic sells part to customer and charges £120 the shop charged and then adds VAT onto that, making the part £144.

Mechanic pays HMRC the £24 VAT he charged the OP. But he is able to claim £20 VAT from the amount he paid to the shop meaning the part actually cost the mechanic £100 ex VAT so the mechanic has made a profit on the part of £20 and the OP has, effectively, paid VAT twice.

There is no way in hell the mechanic could end up 20% down unless he didn't claim the VAT on the purchase of the part from the shop.

LandyAndy

Hammyman wrote: »

Wrong. You missed an important step out.

Mechanic buys part from motorist shop which costs £120 which is inclusive of VAT
Mechanic sells part to customer and charges £120 the shop charged and then adds VAT onto that, making the part £144.

Mechanic pays HMRC the £24 VAT he charged the OP. But he is able to claim £20 VAT from the amount he paid to the shop meaning the part actually cost the mechanic £100 ex VAT so the mechanic has made a profit on the part of £20 and the OP has, effectively, paid VAT twice.

There is no way in hell the mechanic could end up 20% down unless he didn't claim the VAT on the purchase of the part from the shop.

No he hasn't.

By that token he has paid it three times given that the parts factor has bought it from a manufacturer and added a mark up. But wait, didn't the manufacturer buy his raw materials from someone? So the OP has paid VAT four times now. And so on until we get back to the miners who dug the metal ores out of the ground.

The OP has paid VAT once on the charge for bringing the part to its current position.

sunshinetours

LandyAndy wrote: »

The OP has paid VAT once on the charge for bringing the part to its current position.

This is it in a nutshell. The OP has paid a mark up on the parts and personally paid one lot of VAT - end of