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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?
I'd be asking why are they paying VAT the buyer pays VAT and then ask the same question about the warranty.
He should have only charged VAT on his commission IMO
Yep well I was thinking that basically they were buying the services of the man to sell the caravan therefore if nothing else they could be charged VAT on 8% of the total sale cost.
I think you need to meet this guy and get his side of the story.
Ask to see full details of what info he gave them before the sale and all his vat registration details etc.
If he's acting as an agent then the sale shouldnt; be vatable, only his commission.
Once you have all the details go to CAB or a solictor. And tell the bloke you are - he may suddenly find some money.
I'd try and contact the buyers and see what they really paid too.
Don't leave your parents to sort this out - they clearly can't cope.
assuming they paid vat when it was bought at point of sale
then you cant charge vat again.
he can how ever charge vat on his commission.
Warranty?? Sold as seen, no warranties offered. Id be having words with the storage bloke toute suite.
I'd try and contact the buyers and see what they really paid too.
Yeah I was wondering this myself, but doubt there is any way I could find out. If the guys legit though I assume he could show us all the signed paper work from the buyer...
I agree my parents probably cant cope with it, but its a big step to start getting involved in their affairs, and a difficult one to broach with them.
Trail-rat I've had a quick look on HMRC and couldn't see anything that confirmed the VAT rule, can you link to anything?
sounds like he has took advantage of your parents !!
bit crap that !
get your bombers ready
Yeah I was wondering this myself, but doubt there is any way I could find out. If the guys legit though I assume he could show us all the signed paper work from the buyer...
Ask for a copy of the warranty and sales invoice.
I agree my parents probably cant cope with it, but its a big step to start getting involved in their affairs, and a difficult one to broach with them.
I agree with you but you need to do it all the same
My father in law has just been ripped off by a company [1 man band]
His Karcher petrol jet washer that he uses to clean down the hard standing in front of his kennels stopped working.
long story short ......... some guy who advertised as fixing them ended up getting him a 2nd hand one for way above new RRP and taking his old one as a part ex ........... ****ing tossers
Did some work for a caravan storage company a couple of years ago, counted my fingers whenever we shook hands. One chap seemed to revel in tales of how little he had paid old folks for their vans and what he had made on resale.
CAB should be first stop, they will be able to advise on what paperwork this guy should have to be able to act on behalf of your parents as an agent.
Where abouts in the UK did this happen?
You could also speak to the Caravan Storage Assoc to see if they have any agreed standards etc for this kind of thing: [url= http://www.cassoa.co.uk/Caravan_Storage_Home.aspx ]CASSOA[/url]
Roger - Its near Leeds Bradford Airport
just be careful you don't end up annoying your parents, they might see what you're doing as meddling and old people can tend to be a bit defensive about their decisions.
I hope you find a positive solution to this as I think he's definitely got some questions to answer and I wouldn't be too shy in going to see him. try to record what he says or take a witness or both as two people and a recording is miles better than word against word.
[url] http://www.hmrc.gov.uk/vat/start/schemes/margin.htm [/url]
since the fella wont have paid vat on the item as he was selling on behalf - there was no vat for him to claim back.
Bit like when you sell on a used commericial van from a private user.
the private user hasnt claimed the vat back thus the dealer sells on the van with no vat to be added (or should) and then he will pay vat on his margin ( in this case the commission)
but if its from a tradesman whos claimed the vat back then the vat is to be paid to the tradesman , but claimed back by the dealer who makes the end user pay it to him for his payments to hmrc.
@FD not our suspect then, he was/is based in S Yorks.
don't forget to give us an update when you've had a word with the guy!
What are equivalent caravans going for online?