I have a new client who has been reclaiming her personal mobile phone and home broadband bills from her limited company. The mobile phone and broadband bills are in the directors’ personal name, the director pays for them from their personal bank account and then reclaims the cost from the company. She has also reclaimed the VAT on these expenses.
As these bills are in the directors’ name would this require a P11D? The company started trading Jan 2020, the bills that have already been reclaimed include Jan to Aug. If a P11D should be completed then Jan, Feb and Mar bills should have been on a P11D which is now late.
Also, should the VAT element be adjusted to account for personal use? There is no clear way to breakdown the private and business use (Although the director was furloughed for 4 months, so there should have been no business use in these months). If I cannot clearly identify the business use should I reverse the VAT?
Any help would be appreciated.