Vat Claiming Rules

tjayne

Hi Everyone,

Please could I have some help on the below scenario?

A training course was paid for by a current employer, however the person is leaving and has set up their own company. The current employer paid for the course via a VAT invoice, and has simply deducted the costs from the person leaving's wages.
Now. I need to account for this cost in the books of the person who is leaving and has set up their own company. Am I right in thinking that I can't reclaim the VAT on this as the VAT invoice has been covered by the person that has originally paid for the training and simply deducted from a wage payment? My understanding is that in order to claim the VAT the original company would have had to raise a VAT invoice to the person leaving's new company?

Hope this makes sense and thank you in advance for your help!

reader

It sounds like the invoice is not wholly and exclusively for your client's new business.

It sounds like it was a business expense for the first company.

Your client shouldn't be putting business expenses of other companies through his company- sounds like tax evasion to me.