It was arranged through their school for them to do the work experience and there was no agreement for any payment. They are under 16 and "worked" less than 40 hours a week.
The £100 was given as a token gesture (gift) without consultation with the accounts department!
It would be possible to get the necessary details if this did need to go through payroll.
Thank you all for confirming what I thought was correct.
I agree that there does seem to be a long held belief among employees in many businesses that they don't have to pay VAT on goods purchased via the company. A memo to them to clarity VAT on staff purchases is a good idea.
Just to attempt to complicate this a bit. An employee has objected to paying the VAT as he plans to use the goods purchased (tools) in the workplace and not at home. These are obviously tools that he feels he needs, but that the company don't think are necessary.
I still think he should pay the VAT as it is a staff purchase that will be deducted from his wages. However, am I right in thinking he may be able to claim tax relief from HMRC?
I am trying to soften the blow of having to pay VAT for him !
My answers
They do invoice for marketing services with VAT added, this comes as a separate invoice
It was arranged through their school for them to do the work experience and there was no agreement for any payment. They are under 16 and "worked" less than 40 hours a week.
The £100 was given as a token gesture (gift) without consultation with the accounts department!
It would be possible to get the necessary details if this did need to go through payroll.
Thank you all for confirming what I thought was correct.
I agree that there does seem to be a long held belief among employees in many businesses that they don't have to pay VAT on goods purchased via the company. A memo to them to clarity VAT on staff purchases is a good idea.
Just to attempt to complicate this a bit. An employee has objected to paying the VAT as he plans to use the goods purchased (tools) in the workplace and not at home. These are obviously tools that he feels he needs, but that the company don't think are necessary.
I still think he should pay the VAT as it is a staff purchase that will be deducted from his wages. However, am I right in thinking he may be able to claim tax relief from HMRC?
I am trying to soften the blow of having to pay VAT for him !
Thanks, that's what I thought but always best to double check these things.