To not understand this calculation

[TheShellBeach]

I've just asked a delivery company to move a three piece suite.

The quote was £50 + 9.5% VAT.

I accepted the quote and asked how to go about paying.

I've just had an email back saying "Just pay the driver the £65"

AIBU to think that 9.5% of 50 is 4.75? And therefore the amount payable is £54.75?

(Also - is VAT even 9.5%?)

Typo maybe? They probably meant to say pay the driver the £55

That’s strange. Standard VAT rate is 20% so on a £50 bill that would be an extra £10.

I don't believe there is a VAT rate of 9.5%

Are you in the UK? VAT is either 20% (standard) or 5% (reduced rate for stuff like car seats or energy bills)

£60 would be right for a £50 plus £10 (20%) VAT

Vat is 20% on just about everything (including deliveries). So £50+ 10 vat = £60

What sort of company is it? Man with a van sole trader, or a proper company?

Are they even VAT registered (if they are, they should know that the rate of VAT is 20% and they should quote a VAT number on all relevant paperwork/emails).

Xposted with @jellycat

Maybe they missed out an extra + sign.
So £50+9.5%+vat which would almost be £65?

No, there’s no 9.5% rate.

you could have a bill where there is an element that is standard rated and an element that is zero rated or exempt. So it might look like an overall rate of 9.5%. But the invoice should show the separate elements.

And a gross of £65 compared with a net of £50 works out at 30%.

OP, ask them for a VAT invoice.

I think that if you pay in cash the delivery company might not tell the taxman about your job, so the “vat” is really “a nice tip
for the driver”.

Unrelated: how did you manage to get the tradesmen to even turn up for £50??? In my recent experience they don’t even do a fart for less than £100…

No, there’s no 9.5% rate.
There's a flat-rate of 9.5%. Do you think that they are getting confused?

But the bill should be £50+std rate VAT = £60. I can't see where £65 comes from!

Yes, there’s a flat rate of 9.5% but that is not what you put on the bill. Even if they are confused about that, they are suggesting a 30% uplift not 9.5%. I don’t think they are VAT registered and they are plucking figures out of the air!

At 65 quid I'd just pay it. Bloody bargain!

I wouldn't "just pay the driver £65!" as you'll have no priif you paid it.
Ask for their bank details and doa tranfer. If they don't want to do that, they are likely to be doing this off-books

I'm going to, but I'm having trouble understanding what his email meant.

Yes, TBH I too think it’s a bargain…unless they pluck yet another randomly different but higher figure out of the air when they get there!

I’m wondering though if they are the sort who will just dump it down a quiet lane ☹️ (happens a lot round here).

We're in Scotland, in a remote area.
The company isn't enormous but it definitely isn't just a man with a van. They deliver all the Evri parcels in the area.

Agree with PP - there's a 9.5% flat rate but it's not really the same thing, guessing they've just googled the different VAT rates and picked one? Definitely clarify!

I'm wondering if it's £50 + 9.5% surcharge (probably fuel) plus vat. That would be £65.70 so would make sense to say just give the driver £65

I’m wondering though if they are the sort who will just dump it down a quiet lane ☹️ (happens a lot round here)

I'm sure they won't do that. They deliver stuff all over Argyll.

Could it be a typo and it's 9.5% something else plus VAT?

It isn't a big price to move something 38 miles, from a shop to a 2nd floor flat (with no lift).

I'm just going to pay it.

I hadn't thought of that.
You're probably right.

@TheShellBeach oh in that case dumping seems unlikely!

I agree with whoever said it’s £50 + 9.5% for something else + VAT because that does actually come out to about £65. Would be good if they clarified though. They should give you some sort of bill or receipt in request.

Often companies levy a fuel surcharge. I use a pallet company regularly for work and all quotes come with a base price, plus 21% fuel charge (current price) though it has been less before. Company DHL accounts also have a fuel surcharge at the bottom of the invoice as well.

This extra 9.5% could be the fuel surcharge.

It always annoys me as the base price looks lower then the add on equals a different price. A bit like restaurants that automatically add a 12% gratuity onto their bill and it's written at the bottom in small type on the menu. Why not just state what the price is inclusive?