Can a company ask for VAT payments retrospectively?

Jenni_D

Can you link us to the rule that they say allows them to make this back-charge?

What contractual T&Cs did they present for you to agree to? Did these include E&OE (as @prowla mentioned previously)?

As others have said, consumer contracts must specify the total price, or where this is not possible then how the total price is derived. How exactly was the price presented to you?

So unless the contract included an E&OE term then I don't see how they can charge you the "missing" VAT - it was their error so their burden.

Ultimately it is your decision - pay it, come to an agreement re. partial payment, or ignore them and they'd have to take you to court to try and recover the monies from you.

user1977

Jenni_D said:

unless the contract included an E&OE term 

"E&OE" isn't likely to be enforceable against consumers anyway - particularly not in this case when there's a specific law stating that advertised prices are to be VAT-inclusive. 

Even for business customers I doubt they'd be able to successfully argue that the customers should have somehow spotted that the rates ought to have had VAT added (when it sounds like the taxi company weren't aware either!).

This is the taxi company's problem, not the customers'.

Flight3287462

The taxi company have been caught by the tax man and now attempting to mitigate their loss.  Ignorance of the law is not a defence and the firm are liable.

Tell them to get lost and withdraw all custom........cheeky so and so's.

SiliconChip

Bookowl said:

Ergates said:

Bookowl said:

*seems to only apply to those who set up personal or business accounts.

Wouldn't that be all accounts?

Why didn’t they just decide to charge all customers  who used taxis from 2017-2022, why single out those with accounts?

It seems obvious to me that the only people they'd have much chance of attempting to charge are those with an account, how would they be able to retrospectively charge someone who hailed a taxi in the street or made a one-off booking?

However, I'd agree with the others that the payment of the VAT is their responsibility not yours (assuming you had a personal account, it might possibly be different for businesses) and I'd just ignore them.

Jenni_D

user1977 said:

Jenni_D said:

unless the contract included an E&OE term 

"E&OE" isn't likely to be enforceable against consumers anyway - particularly not in this case when there's a specific law stating that advertised prices are to be VAT-inclusive. 

Even for business customers I doubt they'd be able to successfully argue that the customers should have somehow spotted that the rates ought to have had VAT added (when it sounds like the taxi company weren't aware either!).

This is the taxi company's problem, not the customers'.

I was playing it safe, but I accept your interpretation.  

peter_the_piper

The fact that they mention HMRC I wonder if this is just one of many they should have been charging for.

outtatune

Flight3287462 said:

The taxi company have been caught by the tax man and now attempting to mitigate their loss.  Ignorance of the law is not a defence and the firm are liable.

Tell them to get lost and withdraw all custom........cheeky so and so's.

This.

You don't pay VAT. They do. You just pay the price you agreed to pay for the service.

Bookowl

Thanks All!  
The wording in the email I received:
we are legally obliged to collect historic VAT due to them on their behalf.

Surely it’s between HMRC and the taxi firm?
the company charged VAT on the admin fee but not the account fares.

I’m very worried about this. 

Bookowl

peter_the_piper said:

The fact that they mention HMRC I wonder if this is just one of many they should have been charging for.

Yes. I know of individuals who use an account with them to get to work. Also, there’s business /corporations who use this company locally. 

I’m not a company though.

Jenni_D

It is between HMRC and the taxi firm. As a consumer the law says that the full cost must be advised, inclusive of any taxes. If they "forgot" to add the VAT then that's their lookout.

The only time you should worry is if you receive a letter from HMRC.