Company expense claims - VAT receipt

[anonymous-user]

[redacted]

[Eric Mc]

Was the company reclaiming Input VAT on these expenses?

[ClassicMercs]

I would also question whether a tax plod would start to look at the expenses for other reasons. Is it a valid expense for the business, or is there some benefit accruing to the employee.

If there is insufficient evidence to show it was for business the employee could pay PAYE and NIC as well - and if he doesn't pay the cost would pass over to the company.

There is no excuse for an employee not getting a proper receipt - just laziness in my opinion. And I'm not afraid of telling my boss when he fails on this score. The easy way to explain is tell him how much VAT I haven't been able to reclaim as I have no receipt - that gets him sorted (for another three months until the next time).

[Eric Mc]

anonymous said:

[redacted]

[Deva Link]

ClassicMercs said:

If there is insufficient evidence to show it was for business the employee could pay PAYE and NIC as well - and if he doesn't pay the cost would pass over to the company.

The above is correct if HMRC doesn't believe that it really was entertaining, and not just the employee taking his family out for dinner.

We've been told that you should detail who was entertained (name and company) and the purpose.

As mentioned elsewhere, VAT receipt is irrelevant as VAT isn't reclaimable.

Note that VAT is reclaimable for subsistence claims, and I worked for one company with a biggish salesforce (around 50 people) where a "pie and a pint" at lunchtime with a customer was standard everyday practice. They used to ask for VAT receipts as they said they split out the subsistence element, although I'm dubious they really did it.