Attempted Rip Off ?

[landlockedpirate]

Earlier this year I sent my sports cruiser to a large East Coast broker. The boat sold quickly (within 3 weeks) and I got the cheque soon after. I was very pleased with the result.

I had also sent my large twin axel trailer with the boat and this took untill this month to sell.

I rang the broker to find out where my money was, he told me that all secondhand trailers must be sold including VAT. The result was a sale of £2200, less VAT (£328) less commision (inc VAT) £372. Giving me approx £1500.

I was shocked, since I did not realise the trailer would have a VAT element. The broker assured me this was true ( he has been doing VAT for 30 years etc etc).

I left it at that, but had a feeling something was'nt right. I know its not a lot of money(1 tank of fuel !!) but I dont like being ripped off.

I spent the next half day using the company VAT consultant and the Customs and Excise. After a lot of phone calls and general messing about, the broker backed down. I recieved my cheque today- no mention of VAT -for the full amount.

Was the broker right? Have I defrauded the all knowing, all seeing tax man?

Has any one come accross this before?

Or was the broker just trying to make a bit more cash from me.

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[tcm]

Re: ye, a Rip Off

imho...No. You have not defrauded the taxman. the dealer was attempting to defraud you. You cannot buy anything (cept books and kids clothers and some other things) in the UK without it including the VAT element, so it is "VAT PAID". You sell, including VAT - you're a consumer. The dealer pays (and reclaims) vat on everything new that he buys, but charges (and refunds to the vatman) all the vat on everything new that he sells. he effectively pays the vatman 17.5 % of his gross profit

But him charging vat on a secondhand thing sold on behalf of a private individual is indeed a ripoff - he can't have charged the vat, and he can't reclaim it from you nor repay to the vatman, unles he's a total twit.

However, he may simply not understand vat...




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[landlockedpirate]

Thanks, pretty much my thoughts. Scarey that with a turn over of £5 to 10 mill a year, he doesnt understand VAT !

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[tcm]

hm, in that in went his way - i think he does understand vat but was betting that you didn't...

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