Refund Excluding VAT Paid?

LavenderBees

Hi All

Hoping someone can help me with this - I am in dispute with a company who supplied me with a service a few years ago, which is under guarantee, but they are doing everything they can to avoid putting right their work even though I have a valid claim under the guarantee.

It has got to the point where I have now asked them for a refund, and I will get the work done elsewhere. I paid them 2 separate amounts including VAT. I don't know if the dates are relevant, so will give them here -

2006 £xx inc VAT
2009 £xx inc VAT

They are saying that as they passed on the VAT portion to HMRC, they don't have to consider it.

Surely that can't be correct that I am out of pocket because of 1) their incompetence and 2) HMRC. :mad:

Any thoughts on this to help me will be very gratefully received. I have advised I will discuss their company's shortcomings with Trading Standards and take out a claim against them through the small claims court - is there anything else I could consider?

Many thanks for any help

LB

LilElvis

They just need to raise a credit note within their invoicing system, issue you with a refund for the gross amount, reclaim the VAT on their next return and their P&L will include the net amount refunded to you. Its basic accounting.

LavenderBees

Thank you!

I didn't think it could be right. They have tried it on all the way through..if they told me something true now, I wouldn't believe them

BorisThomson

Given the dates this is outside the statute of limitations. Your rights are limited to what the guarantee offers. What does this say about remedies?

Also keep in mind that you have had 7+ years use of the service provided.

mikb

If you are feeling evil, you could always ring HMRC and run the situation past them, including any written evidence of this being their policy, and of course their VAT reg number.

I'm sure HMRC would love to give them a gentle education in the art of VAT ... companies that try that sort of stuff usually have a mountain of questionable paperwork, and would not like an audit.

Obviously this could be prejudicial to any refund claim, so either use as leverage before ... or as a stick to beat them with after

In practice it sounds like they are trying to refund you 20-odd % short, and they will reclaim the VAT and pocket it instead.

LavenderBees

Yes, I think you are right, and unfortunately with this company, it doesn't surprise me. I think on the feeling evil scale, at this point...hmmm...a 10 lol.
I will mention checking with HMRC in my next communication if my refund is not forthcoming.

As for 7 yrs + service, I'm afraid not....it has been defective since day 1 however the awareness of this and the damage caused is apparent now. I am opting for a refund as frankly I don't want these cowboys anywhere near my house ever again.

You live and learn, unfortunately.

Thanks for all the help. Much appreciated!

LB