Company has been trading for many years. Registered for VAT on 1.11.19. Director bought laptop for use in business in Sept 2019. VAT invoice is in director's name (online purchase). Company reimbursed director in Sept 2019. Can company recover the VAT on computer ? This is something that must happen all the time but I have failed to find definitive confirmation (or otherwise) that the company can recover the VAT paid by, and reimbursed to, the director. VAT Notice 700 para 11.2 says that the supply must have been to the registered person. I can't find anything that overrides this for employee-purchased expenses. 11.4 doesn't apply because it relates to pre-incorporation, rather than pre-registration, purchases by a director. VAT can be recovered on employee-purchased expenses. Are the rules for recovering pre-registration VAT more stringent?
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I'd claim.
Unlikely to be disallowed at a VAT visit provided the director actually needs it for the company's work.
It's not smart play by the director, though. There's a lesson there for the future.
I wouldn’t claim without a VAT invoice in the company name. The rules are relaxed, for example, VAT on a personal phone bill but I wouldn’t treat this computer in the same way.
Is there any personal use of the laptop and is it generally kept on business premises, or is it taken home (or is the business home based)? Also is there a reason why it was personal rather than on a company account/company card?
If it's clearly business use only and there's a sensible reason why it had to come through him acting as essentially a purchasing agent for the business, then given that the company immediately seems to have paid for it then I'd claim it. It's the sort of thing I'd have not raised too much of a fuss over back when I was on the HMRC side of the table.
However if he's got a copy of Fortnite on there and ignored the business purchasing card in preference to doing it personally then he's made his own bed and can sit up all night with his laptop on it if he likes though!