VAT on BT bills?

KaelaH FMAAT, AAT Licensed Accountant Posts: 131 πŸŽ† 🐘 πŸŽ†
I have a client who is claiming the cost of a phone line through his business. It's a number he has specifically for the business so I don't think there is a problem with this. However, as far as BT are concerned this is a residential line. The bill shows the VAT amount on it however there is no VAT number shown on the bill, can I claim the VAT???


  • janwal
    janwal Registered Posts: 1,189
    I have some numbers at work tret as residential being living quarters for staff which show VAT but are not able to reclaim the vat.
  • payrollpro
    payrollpro Registered, FMAAT Posts: 427 Dedicated contributor 🌟 🐡 🌟
    Technically speaking your BT account is not a VAT invoice and they clearly show this to be the case. If you ask for a VAT receipt they will issue one but only for the payments made so as long as the VAT receipts are the same as, or exceed the recovery then they are usually accepted.

    The rule in the EU is that if the account is in a different name to the business then the recovery is barred, however, HMRC, by concession will allow a claim for the input tax on calls but only if the business retains the account. The fixed cost of the line however is a separate contract between BT and the householder, if its domestic, so is not available for recovery at all.

    Remember that the main concessions for documentation are that under Β£25 you can usually get away with it, between Β£25 and Β£250 you can use the less detailed rules but above that its a full VAT invoice or receipt or no recovery.
  • JodieR
    JodieR Registered Posts: 1,002
    Useful to know the strict rules, but I've got several clients with BT & even mobile phones in personal names, I've never requested a VAT invoice and I've never (touch wood) had any vat inspector try to disallow it. Have I just been lucky?
  • T.C.
    T.C. Registered, Tutor Posts: 1,448
    In the few enquiries that I have been part of, I have never had an inspector query a phone or mobile bill because it is in a personal name. Bearing in mind that I am talking about sole proprietors and the bills are proportioned with some private use of course.
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