VAT on business costs paid personally

If you pay for your company’s business costs personally there are a couple of things to look out for if you want to reclaim the VAT.

  • ensure you have a valid VAT receipt
  • ensure the receipt/invoice is made out to the company and not to you personally

There are exceptions to these rules such as low value items and travel and subsistence costs of a director/employee.  Also, remember that the VATman can allow a claim by discretion if it looks reasonable – quote his Statement of Practice dated March 2007.

Further information can be found here: http://www.hmrc.gov.uk/vat/managing/charging/vat-invoices.htm#6

No receipts are required at all for items such as parking and toll charges where the cost is less than £25.

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