Buy to let - invoiced to directors but not company

Invoice payment

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Hi, we have a buy to let property. We had work done at the property by builder and builder issued invoice to the directors rather than company. Can company still pay for it?  Problem is builder didn't change the invoice despite repeated requests to change details. Please help. Thank you in advance. 

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By David Ex
17th Jan 2024 19:41

Sam Jones wrote:

Can company still pay for it? . 

Absolutely.

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Replying to David Ex:
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By FactChecker
17th Jan 2024 20:48

... assuming that "buy to let property" is owned by the unmentioned company?
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... "We had work done" actually means work was commissioned by that company?
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... "builder issued invoice to the directors rather than company" means to them as individual persons rather than as 'directors of the company'?

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Replying to FactChecker:
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By David Ex
17th Jan 2024 21:18

FactChecker wrote:

... assuming that "buy to let property" is owned by the unmentioned company?
+
... "We had work done" actually means work was commissioned by that company?
+
... "builder issued invoice to the directors rather than company" means to them as individual persons rather than as 'directors of the company'?

Company ‘can’ pay but not to say it would be legal, etc., etc..

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Replying to David Ex:
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By Bobbo
18th Jan 2024 11:13

I think I remarked on this on a previous question. A company can pay for pretty anything in the world it might want to. Whether doing so has any unintended consequences (e.g. tax(es)) is often what posters fail to specifically ask in their question.

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By FactChecker
17th Jan 2024 20:54

OP: there's so much that you haven't explained (not just the questions posed above) - such as the nature of this company and whether it is VAT registered?

If it is an incorporated company and is in business, it needs an appointed accountant - and pronto!

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Replying to FactChecker:
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By Shareholders1010
17th Jan 2024 22:32

Hi thanks. So in short trader issued invoice using my personal name rather than addressing to the Ltd company (non vat registered). The Ltd company paid the invoice . Now to claim the expense , does the invoice have to be in the company name? As I am struggling to get trader to send me revised invoice

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Replying to Shareholders1010:
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By FactChecker
17th Jan 2024 22:45

Could you answer the questions I raised at 20:48 above?
(they may be very relevant)

And I'm even more confused after your latest reply ... if "Ltd company paid the invoice", then why are you trying to claim the expense (that you didn't pay)?

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Replying to Shareholders1010:
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By Tax Dragon
17th Jan 2024 22:56

Sam Jones wrote:

Hi thanks. So in short trader issued invoice using my personal name rather than addressing to the Ltd company

Why?

Sam Jones wrote:

The Ltd company paid the invoice

Why?

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Replying to Tax Dragon:
Danny Kent
By Viciuno
18th Jan 2024 09:48

Lost of traders are lazy or don't understand the distinction between a company and it's officers. They meet the director in person, they speak to the director, so they invoice the director.

Getting them to change invoice details can be a huge pain, especially if you have already paid them!

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Replying to Viciuno:
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By David Ex
18th Jan 2024 09:58

Viciuno wrote:

Getting them to change invoice details can be a huge pain, especially if you have already paid them!

Exactly. Shouldn’t have paid it with the wrong details. That would focus the builder’s mind.

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Danny Kent
By Viciuno
18th Jan 2024 09:46

From a practical perspective I'd say yes assuming the company owns the property.

Save a copy of your correspondence with the builder asking them to change the details and keep it with your records just incase HMRC ever open an enquiry.

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By JCresswellTax
18th Jan 2024 10:03

We can get as technical as we like with these things. But if the work was carried out on a property that is owned by the company, I would be advising my client (the company) to claim the cost and pay the invoice.

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