Insurance excess and VAT
Options
KPrice
Registered Posts: 2 New contributor 🐸
One of our fleet drivers required their windscreen repaired under the fleet insurance policy. I have now received an invoice: excess £0.00, VAT £20.00. Is anyone able to explain what is going on here?
0
Comments
-
One of our fleet drivers required their windscreen repaired under the fleet insurance policy. I have now received an invoice: excess £0.00, VAT £20.00. Is anyone able to explain what is going on here?
I think this a specific agreement with the Insurance Industry.
What happens is the Insurance company pay the Net Figure for, Lets say a Vehicle Repair and your company pays the VAT for the actual repairs, Which is then reclaimed by your company.
We sometimes receive invoices of Excess = £500 & Vat = £850
This is because the Vat is calculated on the actual repair cost of which the Net is payable by the Insurance company.
I think this is correct.
Thanks0 -
What he says - because a VAT registered company can reclaim the VAT element, the insurance company dont pay it.0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 18.9K For AAT students
- 269 NEW! Qualifications 2022
- 148 General Qualifications 2022 discussion
- 9 AAT Level 2 Certificate in Accounting
- 44 AAT Level 3 Diploma in Accounting
- 65 AAT Level 4 Diploma in Professional Accounting
- 8.9K For accounting professionals
- 23 coronavirus (Covid-19)
- 274 VAT
- 92 Software
- 274 Tax
- 138 Bookkeeping
- 7.3K General accounting discussion
- 195 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 352 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 590 Job postings
- 17 Who can benefit from AAT?
- 36 Where can AAT take me?
- 44 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 65 AAT membership