I have a client, who's employee has to use his own mobile regularly for business use. He gets an itemised bill and has been separating the calls that are personal and only claiming the business calls. However, they have paid him two payments without having the bills to hand, therefore no VAT has been claimed. Two questions - Can they claim the VAT on the payments they make to the employee? If they can, how do I put this on Sage? I can't correct the payments made as the transactions have already been reconciled on the last two VAT returns, so I need to do journals. Should I credit 7553 Mobiles and Debit 2202 VAT liability, only if they are allowed to claim the VAT on the phone usage of course?
Hi there, I dont think I would claim for the VAT as the invoice will not be in the company name and only in the employees name and so I think on inspection HMRC wouldnt like the reclaim.
