We have set up a loan account for an employee for parts ordered through the company for his own personal usage. When posting the invoices should I put the amounts through as gross and out of scope therefore ensuring the company doesn't claim the vat back for products that aren't theirs?
Nothe accountant has set up a loan account as a means of recording the employees (the bosses son :)) expenditure through the company. My thinking is because the goods aren't for the company then no vat can be claimed back, and as the employee in question isn't vat registered then they shouldn't be claiming vat.
Won't you just account for them as normal and invoice the employee? seems the simplest way.
If I do this as an invoice it will end up in debtors control, so if I put the purchase invoice through as normal and the do a journal for the sales nominal and the loan nominal do you think that would work?
