Hi, I am self employed and often fit & install bathrooms for a highstreet bathroom showroom company.
1. The company invoice the customer for the design and cost of the bathroom fittings this is to be paid on delivery.
2. The company then send a letter advising of an installation date and the amount due to myself for the labour and fitting.
I fit the bathroom and the customer pays the installation fee directly to me.
I then have to pay a a site adminstration fee back to the company this includes VAT
However on the most recent installation (Installation fee £3285.00) Im only a small business so don’t pay VAT I get the full amount usually, and put it through my books as usual.
I was near completion but had no shower screen to fit. The bathroom company has done me over I had to wait for 8 weeks for a shower screen to be delivered from the company. (well thats what they told me)
However instead they sent someone else without consulting me and have taken £630 to fit it and asked the customer to pay the bathroom company directly!
SO.. This morning they sent me a letter with the following deductions,
£3285.00
- £547.50 VAT
Total amount now due to me £1757.50 so I have lost £547.50 plus I will have to then pay my own tax on the £1757.50 when I do the tax returns.
Ok im not disputing the £630 but can they take the £547.50 VAT off as they have not done the labour or fitting only acted as an agent is it classed as a disbursement?
Also they have charged VAT on the site survey already.
1. The company invoice the customer for the design and cost of the bathroom fittings this is to be paid on delivery.
2. The company then send a letter advising of an installation date and the amount due to myself for the labour and fitting.
I fit the bathroom and the customer pays the installation fee directly to me.
I then have to pay a a site adminstration fee back to the company this includes VAT
However on the most recent installation (Installation fee £3285.00) Im only a small business so don’t pay VAT I get the full amount usually, and put it through my books as usual.
I was near completion but had no shower screen to fit. The bathroom company has done me over I had to wait for 8 weeks for a shower screen to be delivered from the company. (well thats what they told me)
However instead they sent someone else without consulting me and have taken £630 to fit it and asked the customer to pay the bathroom company directly!
SO.. This morning they sent me a letter with the following deductions,
£3285.00
- £547.50 VAT
- £630.00 paid in full to someone else to install the shower screen.
- £291.67+VAT= £350.00 Site administration fee
Total amount now due to me £1757.50 so I have lost £547.50 plus I will have to then pay my own tax on the £1757.50 when I do the tax returns.
Ok im not disputing the £630 but can they take the £547.50 VAT off as they have not done the labour or fitting only acted as an agent is it classed as a disbursement?
Also they have charged VAT on the site survey already.