VAT on insurance excess?
10110527
Registered Posts: 16 New contributor 🐸
One of my clients(a VAT registered company) has just invoiced an insurance company for building repairs inc. vat. The company have declined paying the invoice until the excess amount of £100 is deducted from the invoice. This is fine, but I haven't processed one of these for some years and just need clarification please - e,g, the original claim is £1000+£200 vat = £1200. Is the insurance company invoiced for £1100 and the policy holder £100(for the excess)i.e. would the invoice look like this:-
work carried out £1000
VAT £200
Total £1200
Less excess £100
Invoice amount £1100
Then an invoice to policyholder for £100 with no vat element? I've tried to contact HMRC but the strike means they are taking an age to answer calls!
Thank you!
work carried out £1000
VAT £200
Total £1200
Less excess £100
Invoice amount £1100
Then an invoice to policyholder for £100 with no vat element? I've tried to contact HMRC but the strike means they are taking an age to answer calls!
Thank you!
0
Comments
-
If it helps, I've been on the other side of the fence many times. As the policy holder we'd receive an invoice for the excess and VAT, ie. £100 plus £200.
The insurance company would be invoiced for £900, and wouldn't pay the VAT.0 -
Spot on.
The insurer pays the net, less the excess (£900)
The insured pays the excess (£100) and the VAT (£200)0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 324 NEW! Qualifications 2022
- 160 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 94 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 273 VAT
- 92 Software
- 274 Tax
- 138 Bookkeeping
- 7.2K General accounting discussion
- 201 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership