I have a client who has taken some money out of the business (£2,500 – Director of a Ltd Co who rents a shop). He says it is for work done to his shop some time ago (probably for an upgrade to his shopfit and or some repairs). But because he could not pay for the work due to insufficient funds, he did not put the invoices through the business VAT quarters etc.
These invoices apparently go back a couple of years.
- Can he now re-claim the VAT paid out only recently on a VAT invoice dated say 2 years ago.
- Can he claim the net expense in the accounts under the same scenario?
- If No, how would I treat it.
Many thanks in advance (PS he is on the standard VAT scheme)