Quick query
If instead of going down the P11D route for accounting for private use of company employees, my client debits a % of the cost to the director's loan account, should this be viewed as consideration for a supply and VAT applied accordingly?
Cheers
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Replies (8)
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Administrative staff providing assistance with directors' personal admin beyond what may be considered incidental or insignificant.
Hahaha.
I wonder though whether going down the P11D route also involves a deemed supply.
Been reading this thread with interest: https://www.accountingweb.co.uk/any-answers/vat-on-benefit-in-kind
It depends what is being supplied. You need to give more detail.
Update; I see you have done so now. If there is a charge for use of employees' time, then that should be subject to VAT. By charging the DLA, a consideration is being received by the company, so there should be VAT on that. So, yes.