Eh?? you want me to pay the VAT on damages caused by him ?

Right, got some good news today about my bike..

its been sitting ina garage awaiting repairs for 2 months now... the other blokes insurance 'forgot' to ask someone to inspect it... after a few phonecalls, they inspected it last week, and the go-ahead was given today.

But I was told something confusing by the mechanic at the garage.. he told me that on the fax that gave the go-ahead.. it said I would have to pay the VAT....

I asked what the heck that meant, he said he didnt know.. He asked if I owned my own business which I dont.. and shouldnt matter anyway, as its the other blokes insurance paying anyway...

So whats going on here ??

Also, would the other blokes insurance have to pay the storage fees racked up ?? Cos if they dont, they'll have a mouthfull off me, its not my fault they are inept and forgot about inspecting the bike over such a long period...

Also, what happens with the hire bike charges ??

Ive had the damned hire bike for 2 months..... will that be charged to the insurance ?? I bloody well hope so... again, insurance company should have inspected bike sooner if they wanted to keep costs down.

Im all confused over this.... as nobody seems to tell me anything.....


cheers

You'll need to get your insurances legal team onto this soonest me thinks

They have to pay all reasonable costs incurred as a result of the incident.
That includes storage, bike hire and all costs involved in putting you back in the position you were in before the accident.
You're probably going to need a solicitor to make sure they pay up, though.

Asuming its his fault (I cant remember) and this isnt disputed you will get everything paid. I should check up on this, i.e. that its not being disputed. If its a knock for knock or something you will still be covered but obviously your NCB premiums etc will be affected, but as far as I know whether the cost of a hire vehicle is covered depends on the conditions.

The VAT thing rings a bell. I was a partner in a business once and this may be confusing me but Im pretty certain it was only because we could recover the VAT. But I certainly remember having to pay some VAT somewhere. You would get it back anyway but yet another thing to wait for. Im certain I didnt pay any VAT on the last two car claims when I wasnt VAT registerd tho...

The bloke reversed into my bike when the bike was parked..... all his fault! lol!

He admitted liability..

I cant afford to cough up anything in this regards.. i just dont have the money at the moment...
The bike was not road worthy after the incident.. and would have been plain dangerous to ride, let alone the fact it wouldnt start again!

So Im going to have a chat with my brothers missus.. she works in insurance and all that.. maybe she could shed some light!

Cheers!

Originally Posted by valleyboy

The bloke reversed into my bike when the bike was parked..... all his fault! lol!

He admitted liability..

I cant afford to cough up anything in this regards.. i just dont have the money at the moment...
The bike was not road worthy after the incident.. and would have been plain dangerous to ride, let alone the fact it wouldnt start again!

So Im going to have a chat with my brothers missus.. she works in insurance and all that.. maybe she could shed some light!

Cheers!

Then you will be fine. Ring your insurers and ask whether you need to pay the VAT. Im sure they will say no. If they say yes, then ask explain to them you will need a repayment immediately. Im sure you wont tho.

in the case of third party 100% liability and a total loss of the use of your bike, then u can back claim the loss of vehicle roughly around 10 quid a day. at least thats what i was getting from me car insurance last year, maybe different for bikes.
also start to rack up all the taxi, bus, train receipt as extra expenses resulted by the accident, u should get those back as well.

The important thing is that you talk to your insurers and ensure they are following up the claim correctly. Provide them an update if requried.

You wont have to pay a thing, vat is part of the price to any parts and repairs - the third party insurers will cover all costs.

It's all very well and nice talking to us, and anyone else who might work in an insurance company, but the only ones who will directly help are your insurers. Contact them: They're the ones who follow this up.

Regardless of liability, if you are VAT registered then you pay the VAT on the repair and recover it from the government. If you a private individual and not part of a company or self employed, then you dont pay VAT.

Hope this makes sense, basically:

If your VAT registered, you pay the VAT and claim it back as you normally would via customs and excise or whatever. (Applies mainly to larger companies)

If your not VAT registered or dont even know what this means, then you dont pay the VAT. If your not VAT reg and the garage wants the VAT from you just a quick call to your insurer will sort this out.

Like I said its nothing to do with liability, insurance, etc, it just down to common business practices and the fact an insurance company cannot recover VAT on behalf of a company.

Originally Posted by OnFire

Regardless of liability, if you are VAT registered then you pay the VAT on the repair and recover it from the government. If you a private individual and not part of a company or self employed, then you dont pay VAT.

Hope this makes sense, basically:

If your VAT registered, you pay the VAT and claim it back as you normally would via customs and excise or whatever. (Applies mainly to larger companies)

If your not VAT registered or dont even know what this means, then you dont pay the VAT. If your not VAT reg and the garage wants the VAT from you just a quick call to your insurer will sort this out.

Like I said its nothing to do with liability, insurance, etc, it just down to common business practices and the fact an insurance company cannot recover VAT on behalf of a company.

Not quite the case. You cant reclaim the VAT EVEN if you are VAT registered if you dont use the vehicle for business purposes. VAT is only input tax and reclaimable if the VAT was incurred in the course of making taxable supplies ie in the course of running your business. All private use makes it unrecoverable as input tax. Some business/private use requires an apportionment of input tax.

But insurance is exempt from VAT and most insurance companies are partially exempt as far as their VAT position goes which means they can not reclaim in full the VAT hence their position of getting customer to pay. Its merely a way of avoiding the hidden charges. But in your case as you arent liable you shouldnt be paying anything.

Get onto your solicitor/insurance company and tell them. They should then get it sorted.