UK Reclaiming VAT on invoices not made out to company

[mcplums]

Hello,

I work for a startup where pretty much all the costs are paid by the CEO directly. This is then accounted for as a loan from the CEO to the company.

Are there any restrictions on reclaiming VAT on these costs, since they are made in his name and not the company's?

Thanks

 

[Julia Satin]

Hi,
The problem here is not that the CEO pays for the expenses, but that the evidence of the expenses is likely made to the CEO.
Strictly speaking, if receipts, invoices etc. are made to the CEO and not to the company then the input tax on those expenses is irrecoverable .
In practice HMRC allows recovery of such input tax, but I would strongly recommend to go back to the suppliers and ask them to change the invoices.

 

[mcplums]

Yeah that makes sense. Thanks very much!