VAT taken off refundable deposit?

PingPong

Hi,

We got married this summer and we paid the venue a £600 refundable damage deposit, with the idea being that you get your £600 back if you don't damage the venue.... or so I thought!

We've just had it returned to us, but only got £500 back, because they've taken 20% VAT off..... is this right??

It just doesn't seem right to me somehow, but I can't find info anywhere on whether they can do this?

Any ideas?

~Ping

unholyangel

You pay VAT on goods or services - this was neither, it was a deposit for damages so they definitely shouldn't be refunding minus vat.

Even if it was for goods or services, if you were entitled to a refund it would be a full refund - not minus vat.

PingPong

If this is the case, any idea what I can do about it? They were a fantastic venue overall, but after what we paid them in total(!!!!) I'm a bit miffed at this on top.....

unholyangel

Well personally, I'd start by asking them why they have charged vat and ask them to return it.

Have you already done this? If so, what was their response?

PingPong

unholyangel wrote: »

Well personally, I'd start by asking them why they have charged vat and ask them to return it.

Have you already done this? If so, what was their response?

No, I didn't know if it was normal/okay/accepted thing to do, so I didn't want to look like an !!! by questioning them!

photome

In that case when you ask they may say sorry it was mistake and return the £100

lets hope so

robatwork

Dear Venue,
We had a lovely time at our wedding on 12th Summer this year, and I'd particularly like to thank Joe Schmo who was very welcoming and professional. Please also pass on our thanks to the catering staff!

I would just like to point out a small oversight by your accounts team. You have incorrectly deducted VAT from my deposit return - please send the £100 difference as I am sure you realise a returned deposit shouldn't have VAT deducted.

Once again thanks for a great day etc

vikingaero

Be interested to hear if this is a genuine mistake or a regular scam by the venue.

Valli

20% of £600 is £120 so they haven't taken 20% VAT off at all...

unholyangel

Valli wrote: »

20% of £600 is £120 so they haven't taken 20% VAT off at all...

The £600 includes the 20% VAT. £120 would be the amount of VAT charged if the price was £600 excluding VAT. You need to divide by 120%/1.2 if working backwards from price including VAT.

Valli

I'm cross with myself now because I knew that. Thanks!