A newly incorporated company; 2 Directors, one of whom is also a shareholder and a further 2 shareholders instruct Solicitors to draw up a shareholders service agreement. The Solicitors bill the company, which in turn, charge the net amount to allowable legal fees, in the draft accounts and has claimed the Vat input tax from the account.
My view is; the account should have been issued to the shareholders, party to the agreement and the costs apportioned to each shareholder in the ratio of their holding. The vat input tax should not have been claimed by the company?
What is the opinion of other contributors please.