VAT Question

A

Amateur

Registered User
Messages
31
I recently set up as a sole trader and registered for VAT.

As it took time for my business credit card to come through I purchased some necessary items (eg Printer, Voip Phone) for my business with my personal credit card.

I am wondering if I can claim back the VAT on these items even though they were not bought with business funds or with funds from the business bank account but rather my personal account. I have the receipts for all items.
 
Hi,

Yes there is nothing to stop you claiming back the VAT on these expenses provided you have valid VAT invoices for them and they are genuine expenses relating to your line of business. Hope that answers your question!

Jockey
 
Yep, I did the same. I spent about €300/€400 on my personal Visa card before my Business MasterCard came through, so I just wrote myself a cheque for the exact amount and so transferred it that way from my business a/c to my personal a/c, just to keep everything balancing!
 
ButtermilkJa said:
Yep, I did the same. I spent about €300/€400 on my personal Visa card before my Business MasterCard came through, so I just wrote myself a cheque for the exact amount and so transferred it that way from my business a/c to my personal a/c, just to keep everything balancing!
Click to expand...

Thats what i'm planning in doing as well. There is no reprecussions or problems in doing this?

How could you categorise it in your accounts? Any tax/paye implications?
 
No, I pretty sure not, as it was 2005 I did this as my accounts have since been done by a professional accountant and I was never asked any questions.

Basically I opened a new current account for my business as I wanted to keep all transactions seperate. So, when I had to use personal funds to buy equipment/services, I just wrote a cheque from the business account to cover it. Same as if someone in a PAYE job accrues expenses paid for with personal funds, the employer usually just writes a company cheque.

Bear in mind that I'm a sole trader so it may be slightly different in so far as all money coming/going is 'mine' as such anyway, so the fact that I'm just balancing accounts shouldn't make a difference. As long as they're legitimate expenses you should be fine.

As for categorising it in the accounts... I just put the invoices through as normal, claimed the VAT as normal, and then recorded them as expenses for end-of-year accounts as normal? Shouldn't be any issue there.
 
You must log in or register to reply here.
Back
Top