VAT on employee loan

VAT on employee loan

Didn't find your answer?


We have offered to pay an employee's study fees which includes VAT and he is to repay us the full amount in instalments. Does he have to pay the VAT back to us (like the cycle loan scheme) or do we just recover the net amount? Thanks

Replies (6)

Please login or register to join the discussion.

avatar
By shaun king
24th Mar 2015 14:18

Yes

There is no supply to you - just a loan to him, so you have no right to deduct any VAT. He repays the VAT inclusive amount

Thanks (1)
Replying to Chris.Mann:
avatar
By deena
27th Mar 2015 17:33

Thank you Shaun King

Thanks (0)
By Marion Hayes
28th Mar 2015 03:23

Whose contract?

Who is the study fees contract with - you or your employee

Thanks (0)
avatar
By User deleted
27th Mar 2015 22:21

Have I ...

... just woken up on Endor?

Thanks (0)
By Marion Hayes
28th Mar 2015 03:22

@BKD


Had to Google that one - sorry

Stand corrected on spelling - suitably edited

Thanks (0)
avatar
By deena
30th Mar 2015 17:42

@ Marion Hayes

The invoice is addressed to the company name and address but the "ordered by" has the employee's name and address.

Thanks (0)