VAT on insurance claims
Discussion
My insurance company are about to make me an offer to settle a claim.
They had intended to get a contractor to make the repair and pay, but they cannot find a contractor capable or willing to do the full repair to the standard and warranty requirements of the specialist engineer appointed, so have indicated they simply get 3 quotes for a repair cobbled from various suppliers all willing to do part of the job and then make an offer to us.
So, let's say the quotes received average £20k plus VAT ( £24K) . Will I get the £24k or will I get the £20k and the £4k when I can prove I have actually spent the money effecting the repair.
My intention is not o repair but to scrap the job and strat again.
Let me couch it in a language we all understand.
Say I own a car worth £20k.
It is damaged to the tune of £5k which with the VAT is £6k.
Will the insurers paythe full £6k (the full cost of repair) or just the £5k (excluding VAT) and the £1K in VAT when the repair is done and they get the receipt?
Some time ago I had a bath damaged in transit and they paid for the bath minus the VAT as it had never been fitted.
Say I own a car worth £20k.
It is damaged to the tune of £5k which with the VAT is £6k.
Will the insurers paythe full £6k (the full cost of repair) or just the £5k (excluding VAT) and the £1K in VAT when the repair is done and they get the receipt?
Some time ago I had a bath damaged in transit and they paid for the bath minus the VAT as it had never been fitted.
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