vat on insurance

[Purple-Vintage]

Our landlord has just forwarded the copy of the buildings insurance which we have to reinburse him for.

On his invoice he has added vat even though the insurance company havent charged him vat.

He says its because he has a portfolio of properties.

Doesnt seem fair that we pay the vat on something hes not been charged on just because he is over the vat threshold.

Thank you

 

[David Griffiths]

Sorry, that's the way that it is. Insurance is only exempt when charged by the insurance company. Any onward charge is standard rated except in the very rare situation where it is a disbursement.

Fairness rarely comes in to tax considerations

 

[Purple-Vintage]

Thanks David, If thats the way it is then thats the way it is just didnt want to pay something I don't have to or be "done" by someone adding on vat when they dont have to.

Thanks very much

 

[talkinpeace]

He has provided the service of paying for your insurance
maybe it would be worth arranging to take insurance outside the rental agreement from now on.

 

[David Griffiths]

He has provided the service of paying for your insurance
maybe it would be worth arranging to take insurance outside the rental agreement from now on.

I don't know (m)any landlords who would permit that.

 

[talkinpeace]

true, but worth a try ....

 

[David Griffiths]

true, but worth a try ....

True, wouldn't take long.

Tenant: Can I arrange my own insurance

Landlord: No

 

[Tom McClelland]

Thanks David, If thats the way it is then thats the way it is just didnt want to pay something I don't have to or be "done" by someone adding on vat when they dont have to.

Thanks very much

He isn't "doing" you by adding VAT even if he didn't have to. He doesn't keep a penny of the VAT himself. Just acting as an unpaid tax collector.