VAT recovery on travel expenses

kazflan

I have been given two different answers to this?

An employee works for the company three days a week, due to the distance to travel from home it has been agreed that the company will pay for hotel accomodation for the time spent here.The accomodation expenses are grossed up and paid through payroll (employee is not out of pocket).
The accomodation is paid for on the company credit card.
Is the VAT element for the accomodation and breakfast recoverable by the company??
Any advice is appreciated.

deanshepherd

Yes.

kazflan

Thankyou

mrb82

Along the lines of expenses.....

Company policy allows £5 to be claimed by an employee for a "meal". Anything over this is disallowed (so £5.20 for example is a no-no.

If VAT is included, and the policy not met, then I do not claim back the VAT.

Is it permissable to pro-rata what is being posted so that the VAT is recalculated on the allowable expense?

Thanks

PGM

mrb82 wrote: »

Is it permissable to pro-rata what is being posted so that the VAT is recalculated on the allowable expense?

Thanks

So you're saying, if £10 is claimed, claim all the vat as part of the £5 allowance?

You can't do that. The vat people like you to keep vat in proportion to the total.

mrb82

Ooooh no no no no no! That really is naughty!

Sorry, what I meant was say there is a receipt for £10 inc VAT, could I recalculate the VAT for the £5 we are paying our employee as an expense, so treat the receipt as £5 inc VAT?

PGM

mrb82 wrote: »

Ooooh no no no no no! That really is naughty!

Sorry, what I meant was say there is a receipt for £10 inc VAT, could I recalculate the VAT for the £5 we are paying our employee as an expense, so treat the receipt as £5 inc VAT?

Ah right I get you. Yes you can do that, thats how we'd treat it here.

Accounts

VAT on EU Purchases

Hi,
We buy electronic goods from EU and sell in the UK. As we are VAT Register Company the seller in EU does not charge us VAT.
My question is should we charge VAT on sales in the UK even we not been charged VAT on purchases from EU.

NeilH

Accounts wrote: »

Hi,
We buy electronic goods from EU and sell in the UK. As we are VAT Register Company the seller in EU does not charge us VAT.
My question is should we charge VAT on sales in the UK even we not been charged VAT on purchases from EU.

Hi

Yes you should charge VAT. The VAT treatment of sales is based on what you are selling/nature of the supply, where or from whom you bought it has no bearing.

Neil