LV car insurance will not settle total figure to lease car company

hanlona

My husband Anthony who is tube fed, with complex medical conditions due to battling throat cancer, is still managing to work he is amazing. He has a VW tiguan company car in his name that he leases from VW car leasing ,the contract finishes in September and we have never missed any payments. We need this car also for hospital visits. I (Emma) his wife had an accident in this car in February 2020 where I was in a flood. LV our insurance company sent us a courtesy car whilst they assessed the damage. The VW tiguan after being constantly given excuses on time scale, was eventually written off and their inspector valued the car at 21K, if we agreed to the settlement they wanted to collect the courtesy car and settlement would be paid directly to VW minus £600 claims fee which we had to pay LV car insurance - we agreed to this, LV collected their courtesy car and we have no car.  LV car insurance  paid VW lease company £16900 saying that they deducted the tax as VW tiguan is a lease company car. VW  lease company have tried to contact LV Insurance numerous times direct but LV are not responding. Now VW lease company are threatening my husband with legal action as the total value still hasn't been paid by LV insurance and demanded my husband has to pay £3100 within 5 working days. I am extremely stressed, I am very worried about this, I have to take all the calls as my husband has no voice. Should I pay VW the difference, or take legal advice and get LV to settle in full?  We still have no car during these times its awful that we have been put into such a difficult situation which I am struggling with. Your advice please as on what to do would be so appreciated.  

oscarward

First thing is try and talk to lv, if lv won’t talk make a written complaint , some people say by email but follow up with letter. If they don’t respond within 8 weeks you can escalate to the ombudsman. Sometime the threat of ombudsman is sufficient to concentrate their attention.  Also try an email to the ceo of lv asking if this is treating customers fairly.

Have you asked W finance to hold off while this goes on?

Good luck

dacouch

Is the car leased by your husband's company?
If so is your husband's business VAT registered

hanlona

My husband has the lease in his name from VW then his company pay him a monthly car allowance thank you for your reply 

sheramber

The lease company own the car so the payment goes to them. 
 Insurance companies cannot reclaim VAT  so deduct  VAT from a pay out to a VAT registered business That business  can, subject to normal rules,  claim the VAT back.
 SEE https://www.farnellclarke.co.uk/newsletters/vat-and-insurance-claims

Jumblebumble

dacouch said:

Is the car leased by your husband's company?
If so is your husband's business VAT registered

Just being curious why should the Husbands business's  VAT status be relevant on a transaction between his insurer and The lease co, the payment being made directly to the latter

dacouch

Jumblebumble said:

dacouch said:

Is the car leased by your husband's company?
If so is your husband's business VAT registered

Just being curious why should the Husbands business's  VAT status be relevant on a transaction between his insurer and The lease co, the payment being made directly to the latter

If he was a company and vat registered he would claim the VAT back from the payment to the lease company

Jumblebumble

dacouch said:

Jumblebumble said:

dacouch said:

Is the car leased by your husband's company?
If so is your husband's business VAT registered

Just being curious why should the Husbands business's  VAT status be relevant on a transaction between his insurer and The lease co, the payment being made directly to the latter

If he was a company and vat registered he would claim the VAT back from the payment to the lease company

I have done a bit more looking into this and you are correct as HMRC treat  this as though the payment was made to the policy holder and then passed on to the leasing company although this was not the case hence my confusion
This means that LV have done nothing wrong