Damage Fees at end of lease

[anonymous-user]

Why are Damage Fees 'Out of scope of VAT' ?

I presume that the made up number that appears on the invoice is expected to be the subject of some negotiation still?

[anonymous-user]

I think this whole invoicing at the end of a lease is well dodgy

Extract here from latest correspondence - in which I queried the charge for a specific element of the bill...

"As a gesture of goodwill, we are able to remove 15% of the remaining damage charges reducing the damage invoice to £737.12.

Because this is a gesture of goodwill, unfortunately we would be unable to provide a credit note to counteract this charge, however please take this email as written confirmation that this invoice has been reduced."

So, they can't actually give me an invoice for the amount they want me to pay

And, as per OP, the repair charges are 'outside the scope of VAT'

Just seems iffy to me

What does the collective think?

[Krikkit]

If they can't send you an invoice, don't pay it. Just because it's outside the scope of VAT doesn't mean they shouldn't be able to do an invoice.

[Jimmyarm]

I don't get why they would be 'outside of the scope of VAT', the repair work will be VAT liable unless they are using a tiny repair shop ?

[feef]

Are those fees 'out of scope of VAT' because you're effectively paying for an internal process, not buying anything nor benefiting from a service, and so you're not paying VAT on that charge?

[Buff Mchugelarge]

That does sound dodgy, If a trades person 'can't invoice you' for what ever reason, it's usually because the proceeds will be going in their pocket.

Massive tax dodge by the lease company?
The costs for repair are hugely inflated anyway. I imagine you had a stone chip on the bonnet then?

[essayer]

feef said:

Are those fees 'out of scope of VAT' because you're effectively paying for an internal process, not buying anything nor benefiting from a service, and so you're not paying VAT on that charge?

Dilapidation payments are effectively 'damages' and so are outside the scope of VAT (see VAT notice 742)

E: just realised its not property, lol. I guess the same law applies to cars

Edited by essayer on Wednesday 10th December 15:12

[andburg]

Can't help with the actual qiestion...but this is worth a read

http://www.bvrla.co.uk/service/fair-wear-and-tear-...
http://www.knowlesfleet.co.uk/Documents/FWT/lexFWT...

its the agreed standards for the vehicle rental association, check what they are charging your for is not considered fair wear and tear

[anonymous-user]

I have decided to make them an offer - 40% of their initial bill.

If I was buying that car on a forecourt, all the damages they have identified are things I would want put right before I paid, so I have no problem that there is a charge.

But I think the original number is a bit of a kite flyer tbh...

[Buff Mchugelarge]

JPJPJP said:

I have decided to make them an offer - 40% of their initial bill.

If I was buying that car on a forecourt, all the damages they have identified are things I would want put right before I paid, so I have no problem that there is a charge.

But I think the original number is a bit of a kite flyer tbh...

Good luck with it.
Unfortunately, not enough people question the charges so they'll keep throwing seemingly random numbers around.

[Sheepshanks]

I'm going to hazard a wild guess that this is a Merc?

[Aprisa]

This is why I have always put lease vehicles through our body shop before returning them, pay about £100 per panel instead of their inflated prices.
I have now stopped long-term rental vans as I can't be bothered arguing every time they are returned and they charge you damages that are highly inflated and then the damage is never repaired just noted. The compound effect on high mileage vans must add up to a fair bit?

[Little Lofty]

I got a bill for a van I had leased, three years after I'd handed it back. It was a bit of a shock to see a bill for £3/4k, god knows what had been done to it but the bill was probably more than the van was worth, it would have been five years old. A quick phone call got it sorted out, felt a bit sorry for whoever was going to get the bill.