Taxing Taxing, Part 8
I work in collections for a company that provides equipment finance to other businesses. One morning, I receive the following call.
Me: “Good morning, [Company]. How may I help you?”
Customer: “I’m the accounts manager at [Business] and you’ve charged too much on our rentals!”
Me: “I’m sorry about that. Let me look up your account and see what’s happened.”
I pull up the customer’s details, but the only charges on there are their rentals, which match their documents.
Me: “Can you confirm how much has been charged?”
Customer: “£240! My rentals should be £200!”
In the UK, most goods and services are subject to a 20% tax. It’s common for the net amount to be shown on rental documents and business invoices.
Me: “The amount on your documents doesn’t include the VAT, so this is where the extra amount has come from.”
Customer: “I don’t want to pay it!”
Me: “As this is a lease agreement, I’m afraid it is subject to VAT.”
Customer: “I’m not happy! Who said you could charge me this?”
Me: “The government?”
Customer: “Well, until you send them round to speak to me, I’m not paying it!” *Hangs up*
Me: “I’ll get right on that.”
Related:
Taxing Taxing, Part 7
Taxing Taxing, Part 6
Taxing Taxing, Part 5
Taxing Taxing, Part 4
Taxing Taxing, Part 3
