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Post Info TOPIC: Reclaiming VAT on invoices that are not in the client's name.

Master Book-keeper

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Reclaiming VAT on invoices that are not in the client's name.

Told a client that she wouldn't be able to reclaim VAT on some invoices because they were made out to a different company.

The husband spoke to me today and said that he had spoken to another accountant and VAT can be claimed on an invoice not in the name of the client providing that they things purchased for use in the clients business, providing no other party had claimed VAT on the invoices.

A bit of background. Client is sole trader but the invoices were made out to the husbands previous company which had ceased trading, but had previous history with the suppliers. I am satisfied that the invoices were for my client, and that they haven't been claimed by the husband, as he hadn't traded for a good few months prior.

These invoices are for materials used in fitting out the client's shop, and would have formed part of a pre reg assessment. Is it just finished goods that are eligible under the four year rule, or can materials used in fitting out a shop also be claimed for eg wood, boarding, ceiling materials etc.



Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.


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Posts: 687

Morning John,

Not saying this other accountant is wrong but it would be nice if they could back that information up with some sort of evidence as proof, if you look at

this clearly says that the VAT Invoice should show the name and address of the person to whom the goods or services are supplied

I know you can prove that the Invoices are for your client and paid for by them


A year or so ago one of my clients had an enquiry carried out into their purchases claimed on their SA Tax Return, they were not VAT registered but they also had some Invoices that were in a different name adding up to about 3k, we explained to HMRC that this was because my client had used his friends account as he got a better discount than him, we also supplied HMRC with a copy of the delivery address that showed a job my client worked on, a copy of the original cheque that my client wrote (thanks Joanne) as well as proof of the cheque clearing on the bank statement, HMRC did accept this but did then say in their closure notice

"Please note that all your purchases need to be in your name, so although we have allowed the whole deduction in this instance based on your explanation, we would not do so in case of a future compliance check on later years"

This would seem to mean that not only would they not allow the VAT element in your case but would actually disallow the whole Invoice.

If you do allow the Invoices, my opinion would be that the materials would come under the 4 year rule, but if they were supplied and fitted by a Builder then this would come under services.

As you know I am not an expert on VAT so hopefully someone with a bit more knowledge will be along to offer you more advice.



These are only my opinions of how I see things and therefore should not be taken as advice

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