The solicitors dealing with my accident claim will not pay the VAT - is this right?

I was the victim of a rear end shunt in March. So far the claims handling firm of solicitors have only produced an agreement for me to sign appointing them. I can never speak to my designated claims handler and I have the impression that nothing is being done. The estimate for the repair from an approved company is £1303.21 + VAT = £1563.85.

The solicitors are ''requiring'' me to accept a cash in lieu sum of £1039.19 but are unable/unwilling to explain the discrepancy?

Asked on 25 June 2018 by Alexander Leskin

Answered by Tim Kelly
Advise them that Insurers are not VAT registered and cannot claim the VAT back even when you send in the invoice. Make the solicitors aware that they are committing fraud if they do not pay the VAT amount. The VAT is part of the "quantum of loss" in exactly the same way that labour, paint and materials and parts are. They quite literally will not have a clue what they are asking or why?

Your entitlement in this claim is here www.honestjohn.co.uk/insurance/coles-v-hetherton-w.../
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