Hi, Could anyone help with the correct processing of expenses. I am doing the books for a construction company and one of our employees has his mobile phone expenses reimbursed monthly. My problem is can I claim back the vat even though the Vodafone invoices are made out to the employee himself? I refund him the full amount including the vat. Thanks.
I don't understand how you can claim back the VAT..
As the employee is the one being charged by the phone company who charges him VAT as the consumer, the employee is merely charging the company for use of his personal phone- and cant charge the company VAT.
Notice 700, chp 12a doesn't mention anything about an employee charging the employer...