My employer is very new to business and due to a lack of personal funds has used the company debit card to pay for rail tickets from home to the office, several lunches (more than you could say were business meetings) and petrol for her car. The fuel and food are subject to VAT. What I’d like to know is whether the company can reclaim the VAT element?
My plan is to enter bills against the Director’s Loan account (it’s travel to her permanent workplace and she will be reclaiming mileage for business miles done in her car) and she will eventually (during the year) repay them. She doesn’t want to use the route of them being a benefit that would go through payroll.
Related resources
Replies (1)
Please login or register to join the discussion.
If the "expenses" weren't for the company's benefit - as you imply - no, of course you can't reclaim the VAT.
Charging them to a Director's Loan Account is correct - whether or not she repays them. Obviously, if she doesn't, she'd have to take any consequences of the loan being outstanding - interest benefit, s455 charge and so on, as appropriate.