My bf was in an accident and the cyclist claimed against him. This was settled and the insurance company sent him a bill asking him to pay the vat. Is this normal?
I think what the insurance company is getting at is if your b/f works for a company or is registered for VAT then the insurance company can request same back, the VAT on the invoice for goods/services can be claimed in the VAT return. If he is not registered for VAT tell him to ring the insurance company and tell them that he is not registered for VAT.
more correctly, if the POLICYHOLDER is registered for VAT, the POLICYHOLDER can reclaim the VAT on the defence costs of the claim. Insurance company is within it rights to do so.
BF does not need to be registere for VAT, it is the POLICYHOLDER. If BF is a named driver, then the VAT query should be addressed to POLICYHOLDER. If BF is POLICYHOLDER, insurance co will not proceed with demanding repayment.