I have a client that books a lot of hotels when he is away with work. the invoices have his name and address. the address is also his limited company's address. The company's name is not on the invoice though. Do you think HMRC would allow a VAT claim for that invoice? I have told him to make sure it is on there in future but I have a bit of a backlog. Similar with stuff he's bought online or over the phone that's been delivered to his house.
I know. In the VAT inspections I've had, I've never had anything like this so I wasn't sure how lenient HMRC would be if the expenditure is clearly for the business. I will tell him to get new invoices though.
Hi Princess
I think the issue here would be proving its a business expense given its hotel stays. To be safe from the penalty regime I would say get the VAT invoices addressed to the business.
There was a post on here the other day about the possible scams of online ordering - have a route round, it was Vince who suggested some problems.
With most sites you can add another address so get him to include the works address as best practice, but also get him to ask for invoices from whereever he has purchased things online/phone - its just a habit he needs to get into.
Without the correct paperwork, err on the side of caution.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
In every VAT inspection I've dealt with HMRC have been very tough on this, especially toward Limited Companies. If the invoice was addressed to the director by accident or even slight differences where the company name is "Example (UK) Ltd" and the invoice is made out to "Example Ltd" they've disallowed it. They DO however normally give you a chance to go back and get it reissued with the correct name on before actually adjusting the VAT but it's better just to get it right in the first place in case this isn't possible.
For sole trade businesses / partnerships with a trading name they seem more lenient and let it go through whether it's in the name of either partner OR the trading name.
I had about 5 attempts the other day to get a company to quote the exact limited name of my client on their invoice, fortunately before they had paid it. OMG - despite typing it out in full and even sending them the link to companies house they just kept making up what they thought it should be. Part of the name has a persons name in it, who doesnt even own the business anymore, but they kept writing it as if addressed to him, with then only half of the business name quoted. Its a constant battle with some isnt it.
-- Edited by Cheshire on Thursday 18th of May 2017 02:25:51 PM
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
"Sorry I read the initial question the wrong way around"
You aren't alone in that - on the other hand, when I read it you'd already replied, so it's possible how I (mis)understood the question was a result of what you'd said. i.e. it's all your fault.
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Vince M Hudd - Soft Rock Software
(I only came here looking for fellow apiarists...)
