VAT requirements for partnership

Purchase invoice only with partnership name and address included sufficient to claim VAT

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Partnership of Mr ABC and Mr XYZ - partnership name is Selection 

When the partners order stock for the business, billing address on invoice shows partnership name Selection or do both personal names need to be present?

Selection is the name registered with the VAT number. 

Would this cause any issues for claiming VAT? Any insight appreciated. 

Replies (9)

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By lionofludesch
20th Feb 2024 23:11

No.

Why the doubt?

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By rmillaree
21st Feb 2024 09:09

Selection is the name registered with the VAT number.

thats the correct details - presumably that tallies up exactly with the name that would show up on the check vat number section of hmrc online - job done.

https://www.gov.uk/check-uk-vat-number

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Replying to rmillaree:
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By accountsakk
21st Feb 2024 10:09

If on some invoices the partnership name is missing but includes one of the partners personal name, would this be accepted?

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Replying to accountsakk:
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By rmillaree
21st Feb 2024 10:39

It is what it is - as long as its clear the goods have been used for business purposes thats probably the most important practical test rather than whether name is correct - albeit its plainly obvious that always using partnership name is the recommended way to go - so invoices not in business name should be actively driven down to nil imho.

If expenses are sketchy in nature and its not formally in business name then that will obviously give the vat office room to quible if they have suspicions.

In this regard i have always found vat office to be reasonable poracticably speaking - but imho its making life hard not to use buisnes name and ideally pay for on buisness card. The most important thing is getting the detail right and not mixing business private - ie trying it on and pleading ignorance by chucking in any old receipt with vat !

https://www.gov.uk/hmrc-internal-manuals/vat-input-tax/vit10200
https://www.gov.uk/hmrc-internal-manuals/vat-input-tax/vit31200

HMRC will normally accept that the VAT incurred is input tax if we are satisfied that:

the expenditure was genuinely made for the purpose of the business;
the expenditure was not made for private or other non-business purposes; and
the use to which the purchases are put is an acceptable business use.

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Replying to accountsakk:
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By FactChecker
21st Feb 2024 11:22

Eh?

This is exactly the inverse of the scenario about which you originally posted - so which is it?
Or maybe I should ask, what *actually* is the 'problem' that really concerns you?

But rmillaree is of course correct regarding all the practicalities.

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Replying to FactChecker:
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By accountsakk
21st Feb 2024 11:38

Some invoices are in partnership name and some only in the individual.

Going forward see what the correct practice is to claim VAT back.

1) only partnership name
2) partnership and individuals
3) only an individual accepted?

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Replying to accountsakk:
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By FactChecker
21st Feb 2024 14:36

Still don't understand why you're confused ... but your 1) is the only 'correct' method (as in 'best practice') for the rather obvious reason that you've said that (the partnership) is the entity with the VAT registration.

As before, read rmillaree's response for the practicalities when faced with less than best practice ... but try to get all partners to comply with what HMRC would expect.

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By cbp99
21st Feb 2024 10:11

What do you think the invoice might look like if there were, say, 50 partners?

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By Mentinor
21st Feb 2024 15:54

I'd for the moment forget about vat and read up on the law , all partners need to be named on an invoice , i assume you know that all partners are jointly and severably liable for all debts ..or maybe you dont

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