I rented a car from Europcar at Pisa airport in Italy. It was a new car, with only a few miles on the odometer. The day before leaving home he wouldn’t start.
With the help of the owner of the villa we were staying at, we managed to get the car going and then drove to my cousin’s house, a few miles away, for lunch, hoping that the drive would fully charge the battery. would charge. But when we left, the car wouldn’t start.
My cousin called Europcar and was told that we could take the car to the city of Lucca and exchange it for another, or buy a new car battery, get a receipt and present it at the Europcar counter when we returned the vehicle.
Since we couldn’t actually use the car, a family member took us to a store to buy a battery for just over 100 euros. We installed it and the car started for the first time.
When we returned the car I explained what had happened, that I had left the defective battery in the passenger footwell and handed over the receipt for the new battery.
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An employee asked me to put my bank details on a form, because he could not refund me on the spot because the amount was more than 100 euros.
He said it would take seven business days to refund me.
After almost six weeks, Europcar told me via email that it was ‘non-refundable’ as I had replaced the battery on my own initiative. Please help.
SL, Frome, Somerset.
Sally Hamilton replies: You were clearly angry at the way the Europcar office handled your case. Even though the car rental agent said it would take seven business days for a refund, when it didn’t arrive you had to wait another week before sending an email chasing the payment.
You say that when you still didn’t get an answer, you made many phone calls without getting anywhere.
When the company finally contacted you, you were told that you should have asked a roadside assistance team to replace the battery instead of taking the matter into your own hands.
You have clearly exhausted your mental resources chasing your refund, so you came to me to file your claim. I did this and the matter was resolved within a day.
A spokesperson for Europcar said: ‘The company regrets that the customer did not have a positive experience. Research shows that there was miscommunication. The amount of €104.95 (£91) has now been refunded to the customer.’
Europcar says it aims to ensure all customers have a ‘smooth journey’. Therefore, feedback has been provided to the relevant departments to prevent the problem from recurring.
The tax authorities do not pay interest on late repayments
I am the trustee of a trust set up for my parents which made a capital gain on the sale of a property in December 2021.
Because the rules say that a Capital Gains Tax (CGT) from such a transaction must be paid within 60 days of the gain arising, to avoid interest being charged, I made the payment of £25,750 in February 2022 done.
I later found out, after speaking to an accountant friend, that it was unlikely that CGT was due as a private homestead exemption should have been applied.
I informed HMRC when the tax return was completed in May last year and requested a refund.
Despite numerous phone calls and written requests, it took until May this year for the refund to be obtained.
But when it arrived no interest had been added, even though HMRC had held the money for 12 months. Why does HMRC refuse to pay interest on a late tax repayment?
DP Ilkley, Yorkshire.
Sally Hamilton replies: Like most honest taxpayers who are faced with a bill from the tax authorities, you wanted to settle it quickly to avoid being hit with nasty penalties and interest.
The rules are particularly strict when it comes to the capital gains tax due on the sale of property – and as you mentioned in your letter, this must be paid within 60 days to avoid any penalties.
You were certain that the tax was due on the sale of the property that originally belonged to your parents and was owned half by each of them in an arrangement called tenants in common. When your mother passed away in 2009, her half of the assets were transferred to a trust.
Your father continued to live in the home until his death in August 2021, after which the home was sold. You thought because you had confidence that CGT would register and therefore pay out quickly.
But when you later realized that the trust could have taken advantage of the tax relief on your late parents’ private home – which allows someone’s main home to be sold without paying CGT – you hoped the tax authorities would be just as quick to sort things out of the refund if you had been. when making the original CGT payment.
Unbelievably, it took over a year to pay you back, which was bad enough. But when the money arrived without the interest – which you said amounted to more than £400 – you became furious.
I have asked the tax authorities to investigate. It took a few days, but it came back with an explanation of what went wrong.
Part of the reason for the delayed refund of the tax paid was an incorrect reference number given to you for the original payment.
This meant that the money was not credited to the correct place when the refund was agreed. Regarding non-payment of interest, another error occurred, telling you that no interest was due.
HMRC say this was because the data showed there was no reason for you to pay the tax.
But upon further investigation, HMRC realized that you had written a letter of explanation in February 2022, clearly demonstrating why you believed tax was due on the sale of the property.
HMRC therefore agreed that the original payment was a fair payment of the expected tax and conceded that interest should have been paid. Interest of €455 has now been paid into the third-party account.
The reimbursement interest charged to taxpayers is set at the banks’ base rate minus 1 percent – currently 4.25 percent.
If the boot is on the other foot and the taxpayer owes interest to the tax authorities, the calculation is much tougher.
You will be charged a base rate plus 2.5 percent – currently 7.75 percent. This is intended to promote ‘timely payment’.
An HMRC spokesperson said: ‘We have written to DP to apologize and confirm that interest was due on the refund, which has been paid.’
- Write to Sally Hamilton at Sally Sorts It, Money Mail, Northcliffe House, 2 Derry Street, London W8 5TT or email sally@dailymail.co.uk – include telephone number, address and a note addressed to the offending organization stating they are given permission to talk to Sally Hamilton. Please do not send any original documents as we cannot take responsibility for this. The Ny Breaking cannot accept any legal liability for any answers given.
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