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Removals cancellation fee and VAT
CreditCrunch13
Posts: 1 Newbie
Hi, I needed to postpone my removal date and accept there is up to a 60% charge as it is within 5 working days of the move. My question is should that fee i am charged include the VAT in the original quote? My thought is it shouldn't as they will not be paying VAT on it as it is a cancellation charge.
The figure they have quoted me is only 50% of the full amount, however if VAT is removed from the full amount the charge is in fact over the maximum 60% they state they will charge at 62.5%.
My point is that the cancellation charge is supposed to cover their costs but surely if they will not be paying the VAT that should be reflected in the charge.
Thoughts?
The figure they have quoted me is only 50% of the full amount, however if VAT is removed from the full amount the charge is in fact over the maximum 60% they state they will charge at 62.5%.
My point is that the cancellation charge is supposed to cover their costs but surely if they will not be paying the VAT that should be reflected in the charge.
Thoughts?
0
Comments
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Are you sure it was definitely confirmed? From my experience, removals are usually pencilled in until you actually exchange.2024 wins: *must start comping again!*0
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A cancellation charge will be subject to VAT.
If you want to get technical, here's info on what is VAT exempt: https://www.gov.uk/guidance/vat-exemption-and-partial-exemption
And here's info on what is zero rated for VAT: https://www.gov.uk/vat-businesses/vat-rates0
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