New queries, issue 4295

08 March 2011

Issue: 4295 / Categories: Forum & Feedback

Claiming VAT surcharge from company; arranging shares for employees; income from offshore trust; property improvement costs

Disappearing VAT

Last year a company client incurred some building works for its business and paid £10 000 in cash. Although the client was not offered an alternative price for payment by cheque with hindsight the director accepts that there was probably a ‘VAT surcharge’ for a non-cash payment.

Soon afterwards I discussed this with the director who latterly realised that because the company was VAT registered it really would not have mattered had he paid the VAT as it could all have been recovered.

This was brought back to mind because the director has heard on the grapevine that the builder has been investigated by HMRC and has settled his VAT liabilities in full. This means that my client’s £10 000 payment has now been accounted for as approximately £8 500 plus £1 500 VAT.

Can my client now claim back (and if...

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