Understanding Insurance payouts - help required!

fizz40

Hi, I am in a situation where my insurance company has paid me a sum of money due to water leakage which ruined two floors plus concrete etc.. The builders have completed one room and outsourced the floor covering and I have VAT receipts for both. I have since fallen out with the builders due to some shoddy work practises and a friend has volunteered to complete the second room for cash (he is not VAT registered) However I have submitted the VAT receipts to claim the VAT back from the Insurance company and they are stating that all work should be completed by A VAT registered outfit and will only refund the VAT when all receipts are received by them. I have never claimed for anything before, so I am unsure if this is normal practise; whether I have the choice to split the work between VAT and non VAT registered outfits or is the Insurance company being difficult so they do not have to pay the VAT back on the two invoices they currently hold? If anyone can help I would be extremely grateful. Many thanks.

forgotmyname

If they will only payout to VAT registered companies then its their choice i guess.

Cuts down on you giving them a receipt for work and not actually do it.