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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4181
Experience:  FCCA FCMA CGMA ACIS
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Hi Keith! (Me again with a couple more VAT questions) 1.

Customer Question

Hi

1. I'm a sole trader (over VAT threshold) working from home in an office/games room (biz 90%, private 10% of the time)

The are 9 rooms in total in my home.

To calculate my claimable VAT am I right in thinking that I would use: TOTAL VAT PAID FOR UTILITIES ETC. x 0.11 (1/9) * 90%

2. Is it correct that I can't claim the VAT for each utility, car payment etc. if the relevant paperwork is NOT marked as a "Tax Invoice?"

Thanks for the help in advance!

Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.
Take the electricity bill total. Divide by 100 multiply by 90. Divide result by 'one point the rate of VAT charged' and that is chargeable in your accounts as a business expense. The difference between the 'result' and the sum charged to the business is the input tax for your VAT account.
The bill supporting your accounts is the key. If it bears VAT then it can be, in most cases, reclaimed. The fact that it is not a receipt is irrelevant as it could be physically paid at some later time quite legitimately.
Customer: replied 3 years ago.

Hi Keith

Thanks for that.

One more follow up that can think of ... what about something like a car payment?

I don't get a monthly receipt as such, a payment just is just taken by direct debit every month and that's it!

Cheers

Nick :o)

Expert:  bigduckontax replied 3 years ago.
You can always demand a VAT invoice from a supplier which they are legally obliged to provide. However, I think you will find that no VAT Inspector will comment on the absence of such supporting evidence for an obviously standard rated supply from a large organisation.
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Expert:  bigduckontax replied 3 years ago.
Thank you for your excellent support.