Using company to claim VAT?

grassit

If this is not the most approporiate forum, please redirect me. I have recently found out that my employer is considering making redundancies. We are a small company, only 8 staff, due to shortage of funds. I have also just recently found out that he is building a garage/office in the back garden of his house. He claims this is not to be used a an office for our company. However, I have seen some of the builders invoices, etc and they are being paid out of the companys bank account. I am not surprised there will be redundacies if he is paying £10,000s out of the business to fund the constructions of this new building.

Questions - is this appropriate? I think he will be claiming VAT back if he says the building will be used for "office" activites, but if the planning consent stated "not to be used for trading purposes" how can the two be true.

I would put money on jobs going, we have already had the "risk" letters. This just seems unfair, using company coffers to feather his nest? Not right.

Any

And what do you want to do about it?
He might tell you the office is not to be used for this business, but he can tell VAT visit it is...
And it might be.
I am sorry OP, the only thing you can do is to send authorities on him (VAT control?), but at this moment you don't have a proof.

Money_Grabber13579

grassit wrote: »

If this is not the most approporiate forum, please redirect me. I have recently found out that my employer is considering making redundancies. We are a small company, only 8 staff, due to shortage of funds. I have also just recently found out that he is building a garage/office in the back garden of his house. He claims this is not to be used a an office for our company. However, I have seen some of the builders invoices, etc and they are being paid out of the companys bank account. I am not surprised there will be redundacies if he is paying £10,000s out of the business to fund the constructions of this new building.

Questions - is this appropriate? I think he will be claiming VAT back if he says the building will be used for "office" activites, but if the planning consent stated "not to be used for trading purposes" how can the two be true.

I would put money on jobs going, we have already had the "risk" letters. This just seems unfair, using company coffers to feather his nest? Not right.

Well basically, it's his money and he can do what he likes with it! (Within reason of course.) If he wants to take money out of the company for his own use, there's nothing you, or anyone else can do, provided it doesn't put the company into insolvency with no money to pay creditors.

Also, how do you know he actually is going to claim the VAT back? It may not be put on the VAT return at all.

Another point - directors in companies will have current accounts in the business (usually) and it may be the case that he is using his own money that he has built up in the company, and how else would he get it out, except by paying for personal work or drawings? This happens all the time and it is totally above board.

What I would be more concerned about if I was the director, is that you have been snooping on his private information, and he probably wouldn't be best pleased at you doing so, and might even hasten the sack.

You don't have the full information, nor do you know what his intentions are, so you can't do anything.

LinasPilibaitisisbatman

It also may be that the company own the premises and this is an investment.

John_Pierpoint

Perhaps by the time the shed in his garden has been completed, it will only be a man and wife business anyway.
Building a "garden office" - which is probably allowed by the permitted development rules anyway - seems like good insurance for the small business man in these difficult times.
If you are good at your job, he might offer you some contract work in your new status as self employed ?

In theory there are all sort of other things to think about, such as business rates.
Have a word with your GP he probably knows all the wrinkles if he is anything like mine.