Vat refused to be paid in lieu of work 31 May 2022 at 12:52PM in Insurance & life assurance 1 reply 61 views

jhalstein

A delivery van has damage my property.
Their insurance have had a quote for the work to be done and are happy to pay the amount but they are refusing to pay the VAT in lieu of the work to be done.
Am I entitled to this ?

Sandtree

jhalstein said:

A delivery van has damage my property.
Their insurance have had a quote for the work to be done and are happy to pay the amount but they are refusing to pay the VAT in lieu of the work to be done.
Am I entitled to this ?

HMRC is not you.

If you take cash in lieu of repairs then its common for VAT to be excluded as its a tax and if its paid it should be paid to HMRC. If you go on to have the work done most will then reimburse the VAT once you've evidence its been paid.