Claiming company expenses and VAT

Deru

(sorry if this is the wrong place)

Hi all

I have an invoice that's addressed to me personally (for car maintenance). I'm allowed to claim this as an expense from the place where I work as I use my own car a lot for work. I am unable to get the invoice changed by Honda.

Is the company I work for able to claim the VAT back from this invoice if it's an invoice not addressed to the company?

I read a while back that Invoices need to be addressed to the company and payment method should also a company card but surely not everyone has a company card and in some cases, items need to be delivered to the employees address for security reasons if it's an item purchased online. Is there any official documentation out there that mentions any exceptions when it comes to employee expenses and VAT? Guy at office thinks the invoice needs to be addressed to the company to claim the VAT, which does make sense.

Thanks

Suarez

Repairing and maintaining your personal car is not a legitimate company expense.The only way tjis would be allowable is if the vehicle was owned by the company.

zenmaster

Presumably you are paid a mileage allowance for using your car for your employer's business?

If so then that is to cover all expenses related to the car, including servicing.

If you are not paid an allowance then, firstly, I'd be asking them why not and secondly you can claim an allowance against tax for the mileage you cover at (I think) 40p/mile.

Deru

Thanks for the responses.

>Repairing and maintaining your personal car is not a legitimate company expense

With my work place, they have given me permission to claim these (They normally offer company cars but I'm using my own). Legitimate or not, I'm allowed to where I am. How they deal with it their end isn't my concern but guy I submit the claim to asked for VAT invoices hence the post.

>Presumably you are paid a mileage allowance for using your car for your employer's business?

>If so then that is to cover all expenses related to the car, including servicing.

I don't see how just getting a mileage allowance would cover the wear and tear (Have you seen the cost of tyres?) but I also do claim petrol money back. I treat it as a perk.

So answer is .... they can't claim the VAT for the receipts I presume. I'm still putting the cost on expenses though and I've done so on previous occasions as I've gotten permission.

Cheers.

NiceGuyEddie_2

Am I right in thinking that this isn't disclosed on your P11d?

Deru

That's completed by the company / employer so I've never seen it. I assume they do if they want to be able to account for the expenses and not overpay tax?

Mistral001

This is really one for the employment forum. Let the employer sort out his own VAT. By being too clever and thinking about the situation from the employer's point of view the OP could forget about his/her own income tax responsibilities.

For example, as far as I can see the OP could be taxed on the servicing paid for by his employment as it is in addition to a mileage allowance. So while the OP is worrying about the employer's VAT etc, he could be neglecting his own tax situation.

Savvy_Sue

NiceGuyEddie wrote: »

Am I right in thinking that this isn't disclosed on your P11d?

Deru wrote: »

That's completed by the company / employer so I've never seen it. I assume they do if they want to be able to account for the expenses and not overpay tax?

The employer should give you a copy of your P11D: that allows you to make sense of any future tax demands from HMRC.

Mistral001 wrote: »

This is really one for the employment forum. Let the employer sort out his own VAT. By being too clever and thinking about the situation from the employer's point of view the OP could forget about his/her own income tax responsibilities.

For example, as far as I can see the OP could be taxed on the servicing paid for by his employment as it is in addition to a mileage allowance. So while the OP is worrying about the employer's VAT etc, he could be neglecting his own tax situation.

Or better on Cutting Tax? I'll move it over there now ...

redpete

I've used my personal credit card to pay for hotel bills invoiced to me and submitted these - they are counted as valid VAT receipts that the company can use to claim back the VAT.

Like others I would be wary about how HMRC view the expense rather than if the company allow it.

redpete

Deru wrote: »

How they deal with it their end isn't my concern

It will be if/when HMRC takes an interest.

I don't see how just getting a mileage allowance would cover the wear and tear (Have you seen the cost of tyres?) but I also do claim petrol money back.

40p per mile is what HMRC allows you to be paid for the use of your car as a tax-free expense. Whether this covers all the expense or not is irrelevant.

I treat it as a perk.

on which you should get taxed. The taxman does not allow you to claim all the servicing costs for a car that you have personal use of.

getmore4less

redpete wrote: »

It will be if/when HMRC takes an interest.

[STRIKE]40p[/STRIKE] 45p/25p(10k+) per mile is what HMRC allows you to be paid for the use of your car as a tax-free expense. Whether this covers all the expense or not is irrelevant.on which you should get taxed.

The taxman does not allow you to claim all the servicing costs for a car that you have personal use of.

mileage rates were wrong.

http://www.hmrc.gov.uk/payerti/exb/a-z/m/mileage-expenses.htm