My client has recently taken on a small sales force to promote his product. The sales people use their own cars and phones and our client reimburses them for the cost of business use.
That element is straightforward and we are in the process of obtaining a dispensation to deal with the income tax aspect.
However I am now wondering about the VAT implications. Part of the costs of the phones fuel and other items purchased in the course of the sales people carrying out the duties of their employment will be VAT.
Can my client recover the input tax incurred by the employees even though the expense will originally have been incurred by the employee and receipts will have been given to them and will show for example the employee’s credit card information?
Readers’ advice is welcomed.
Query 17 973 – Sales Man
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