Vat on claim on kitchens

[newhome]

13 minutes ago, ryder72 said:

Its known to happen. ?

 

I got a 'free' appliance - I just made sure it wasn't the £600 extractor (that doesn't actually 'extract' ). 

 

@nod maybe you could negotiate a free appliance or 2 if you pay a bit more for your cabinets if you get my drift .... 

 

 

 

[NSS]

1 hour ago, newhome said:

 

I got a 'free' appliance - I just made sure it wasn't the £600 extractor (that doesn't actually 'extract' ). 

 

@nod maybe you could negotiate a free appliance or 2 if you pay a bit more for your cabinets if you get my drift .... 

 

 

 

We had a quote from one supplier who quite literally loaded all the appliance costs (circa £5k worth) onto the cabinet prices and listed the appliances as foc as they knew we wouldn’t be able to reclaim the vat. We didn’t go with them though as their price was circa £6k more than the route we went, even allowing for the vat saving.

[lizzie]

I had a quote from one company that offered me ‘free’ appliances. Like @NSS I didnt use them as they were way more expensive overall than other quotes.

[newhome]

@nod has his quote now though and is presumably comfortable with it so it may present an opportunity to be creative with ‘free’ stuff if the company is receptive. 

[nod]

Yes the company has offered to mark the appliances down and units up

 

However hard we try the appliances are going to cost 

at least £5500 and worktops £3500 Leaving around 10 for the German kitchen 

We live about two mile from the granite worktop manufactures 

who seem to supply all the kitchen companies A place that runs 24 7

It May be worth approaching them direct as one company was reluctant to tell us who there supplier was 

Though it had the company’s name on the back of one of there samples 

[ryder72]

Jokes apart, HMRC takes a very dim view of these practices and I know of atleast 2 kitchen companies that faced very heavy penalties for this practise.

 

HMRC view is that the appliances are deemed to be sold at commercial prices and applied this as 'lost VAT' and made the suppliers pay VAT, interest and penalties.

 

 

[Pocster]

Couldn’t you though negotiate say 10k kitchen and 5k appliances as 15k kitchen with ‘free’ appliances?

 

[newhome]

Just now, pocster said:

Couldn’t you though negotiate say 10k kitchen and 5k appliances as 15k kitchen with ‘free’ appliances?

 

 

Well you could try but see @ryder72‘s comment about HMRC. I got 2 free appliances but that was on a buy 2 get one free deal, nothing to do with the cabinets. 

[ryder72]

You can try. The risk lies with the Kitchen supplier, not you. Any supplier with sense would take a pragmatic view and offer you a deal.

 

But ask yourself this question - if the supplier is winging their way by ducking and diving around the system would the HMRC one day catch up with them and would you supplier still be in business if you needed to go back to them in time?

Amol

[Temp]

If the appliances are "free" then what happend if you need to send something back for a refund?

[newhome]

3 hours ago, Temp said:

If the appliances are "free" then what happend if you need to send something back for a refund?

 

Well I guess you couldn’t get a refund but the item should still be covered by the manufacturer’s warranty. So you would have to be sure they are the items you definitely want. 

[Pocster]

On 09/08/2018 at 10:02, ryder72 said:

You can try. The risk lies with the Kitchen supplier, not you. Any supplier with sense would take a pragmatic view and offer you a deal.

 

But ask yourself this question - if the supplier is winging their way by ducking and diving around the system would the HMRC one day catch up with them and would you supplier still be in business if you needed to go back to them in time?

Amol

Business is business !

As stated it’s the suppliers risk not yours .

Don’t ask don’t get ! ?

[ryder72]

On 10/08/2018 at 00:17, Temp said:

If the appliances are "free" then what happend if you need to send something back for a refund?

The simple solution is not to get yourself into a position that could prove to be damaging in the long run.