VAT on insurance excess?

[maumau]

A friend has a car registered to her business.

Someone drove into the back of her and she paid the excess after being told she'd be reimbursed when her insurer got the money back from the other party's insurance company.

Two years later they've paid back her excess less VAT saying the car is owned by a VAT registered business and she can "claim it back".

Has anyone experienced this? Is it correct?

I don't know who she's insured with.

 

[quovadis]

A friend has a car registered to her business.

Someone drove into the back of her and she paid the excess after being told she'd be reimbursed when her insurer got the money back from the other party's insurance company.

Two years later they've paid back her excess less VAT saying the car is owned by a VAT registered business and she can "claim it back".

Has anyone experienced this? Is it correct?

I don't know who she's insured with.

Surely she would've already claimed the original VAT of the excess when she originally was invoiced for it?

 

[maumau]

Surely she would've already claimed the original VAT of the excess when she originally was invoiced for it?

Hmmmmm, we've been puzzling over it. I'll ask her because that does make sense quovadis, tks.