My parents are starting to get old, and are getting forgetful, and to be honest I think starting to be taken advantage of in many ways. Lately they decided to sell their caravan. I offered to do it for them on Autotrader etc.
However, they said a very nice man (runs the storage facility I think) where they store their caravan had offered to do it for them on a commission basis. Yes I did try and pursuade them it was a stupid idea.
So the deal was he would sell the caravan and take an 8% commission. He started selling it in April, and they heard nothing for weeks, at which point they called him. About 5 days later they got a call saying they had a buyer, who had put a ‘substantial’ deposit down, but they couldnt buy it in full until they returned from holiday in 3 weeks time.
5 weeks later and they get a call to say that the caravan has been sold but they only got £8,500 for it. A bit disapointed my parents accepted this.
The back end of last week they receive a cheque, which is less VAT at 20% and less £250 for a warranty for the new owners!
Now of course I only have one side of the story, but my parents are saying they set a minimum with the sales man of £10,000 and any less he would have to contact them before agreeing to a lower sale value (which he didn’t). The were not advised that VAT would be deducted, or that they would have to pay a warranty for the new owners!
My first question to them was what contract did you sign, and what are the T&C’s, but they havent been forthcoming yet. I’ve also suggested they need to contact Citizens Advice.
At the very mimimum I’ve said they should write to him straight away to suggest that the cheque received is only part payment.
Does anyone know the VAT rules on this sort of thing, and generally what would people recommend they do next?