I have the following invoice from a client who wants me to claim the full VAT back as quoted in the invoice. The invoice is not addressed to the company Im doing the VAT for, but for his previous company (now defunct)
The invoice shows that the vehicle in a non qualifying vehicle but that VAT is fully recoverable at £52.99, although if there is private use (which there is) then this is restricted to 50%.
Can someone please confirm I have this right? Apologies for the wonky red lines round the appropriate sections (thats even BEFORE Ive had a drink!)
-- Edited by Cheshire on Friday 5th of December 2014 04:25:12 PM
As you say Jo, it would only be 50% that could be claimed back (less if the company deals in partial exemption) if there is any element of personal use, e.g. driving to work and back. Claiming 100% is an invitation for a vat inspection. However as you have intimated if the invoice isn't in the correct company's name I don't believe it should be claimed at all, they need to address this problem as soon as possible.
Can you send more copies after every gin and tonic you have tonight, I think it would be an interesting study and answer the question on many of our lips, 'how cheap a date would Jo be'!
Hi Rob
What is partial exemption? Im having rows with this one about place of work and personal mileage (posted on another thread about VAT on fuel!!) - I suggested he speak to the Accountant and get his response in black and white on both counts. He now says he spoke to the Accountant and he said he could claim in full, but Ive not got the requested email, there's a surprise (not). So Ive just sent him an email about the rules for both/copies of the invoice above and said I need his instructions in writing if he wishes to go against the said rules. Watch this space although the VAT is due Sunday!
Gin - ewwww. Vodka, bacardi, Canadian club, cocktails or wine - fabulous. That said I am a very cheap date - reckon I will only need one to be squiffy as Ive not had a drink for a few weeks! Very cheap, unless I hit the espresso martinis in which case one would need an overdraft!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Hi guys. I would claim this, despite the defunct company (at 50% VAT if no partial exemption) - you could argue that the new company had no choice but to continue the lease in the old name, or suffer fees to cancel (the lease company may or may not be agreeable to change the company name for you) but I reckon as long as the vehicle is now being used in this one new company, you have good argument to allow the VAT. No doubt when this lease ends, the new company will be on the new lease agreement.
Thanks Michelle. He wanted to claim it all so I now have a bit of paper that shows he is going against advice, blur blur.... Hope youre ok - long time no 'speak'!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
