Vat Claiming Rules

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
    reader Registered Posts: 1,037 Beyond epic contributor 🧙‍♂️
    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.
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