Chimney insurance claim

DoraExplora

Hi, im a non VAT reg builder and had to give a quote to a fella for his insurance claim for chimney repair. i gave the cost of my work and all the materials required for the job even though i didnt supply the materials, he got them himself. this fella is an old man and wouldnt be VAT reg either,
he told me the insurance company stopped €700 off the claim for VAT, why is this?

Victor

The relevant materials would either be at 0% or 13.5%. Did he add VAT, even though he wasn't being charged it?

He may also be hustling you.

DoraExplora

Materials generally are at 21.5%, i just gave him a letter saying cost €3000 incl VAT, i wouldnt be paying over sales VAT but just to show the materials were including the VAT cost. he wouldnt be claiming back any VAT on what he bought, maybe i should post this on the insurance forum?

jenzz

Unfortunately this is a long running arguement with the insurance companies. They hold VAT back as a retention. On completion of work & supply of a VAT invoice from a VAT registered tradesman they will release the remainding money.If you purchase the materials in Woodies yourself & do the work yourself the retention will be held forever & you will not receive it. ( The loss adjuster from the insurance company couldnt care less what VAT you were charged on it) Unfortunately this area ( retention) has seen a huge increase in fraud in the last 12 months so every single invoice now going in the the adjusting companies is individually checked. If you are not VAT registered he will not recieve the retention back as you cannot charge him VAT if you are not registered. My only advice to you is to be very very careful here. Any even slight abnormality with regards VAT numbers & reclaiming retention goes directly to their fraud department. I am not suggesting you are fraudulent in any way but if the client of yours is up to something the last thing you need is an interrogation from the insurance company or the fraud squad.

Correct me if im wrong but did you give him an estimate stating inclusive of VAT ? How come if you are not VAT registered?

Victor

DoraExplora wrote: »

Materials generally are at 21.5%, i just gave him a letter saying cost €3000 incl VAT, i wouldnt be paying over sales VAT but just to show the materials were including the VAT cost. he wouldnt be claiming back any VAT on what he bought, maybe i should post this on the insurance forum?

Concrte, blocks, etc aren't at 21%.

oldyouth

VAT will only be deducted by insurers if the claimant (not the builder) is registered for VAT and the subject matter of the claim is an allowable item for the claimant to offset against his VAT liabilities