I am a bookkeeper for a company and put expenses through each month, one man will not hand over any supporting documents for travel/books etc as he says I only need his expense receipts/invoices to reclaim VAT and that as it is zero rated I don't need them! any ideas on what I can say to him?
Tell him that if there's no receipt then the transaction never happened so it will come straight from drawings / go straight to the DLA. (depending on whether self employed or limited).
Also, zero rated is not the same as exempt.
Zero rated does exactly what it says on the tin, VAT is charged at zero percent and must be included in the VAT return.
kind regards,
Shaun.
p.s. welcome to the forum.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Kate is this for his reimbursed expenses? If so tell him hmrc could consider any unsupported expenses as net salary and the company could be liable for tax and NI after the payments are grossed up. You could offer to give him copies of the receipts for his own records.
