VAT Invoices Not Showing Company Name

[NEF]

I just recently purchased a new business phone through John Lewis and my company name was not shown on the VAT invoice, Only my personal name which is on the business bank card anyway.

Will this cause problems claiming VAT back ? Is it mandatory it has to have the company name on the VAT invoice or can the director name be used, if thats all that is visible on the invoice.

 

[MyAccountantOnline]

I just recently purchased a new business phone through John Lewis and my company name was not shown on the VAT invoice, Only my personal name which is on the business bank card anyway.

Will this cause problems claiming VAT back ? Is it mandatory it has to have the company name on the VAT invoice or can the director name be used, if thats all that is visible on the invoice.

I appreciate it sounds pendantic but in your post you said 'you' purchased a new business phone rather than your company.

The supply needs to be made to the company and the company needs a valid VAT invoice to enable it to recover VAT on its costs.

Have a read of this including the section regarding when and how HMRC will exercise discretion https://www.gov.uk/guidance/vat-guide-notice-700#section16

 

[Gyumri]

The supply needs to be made to the company and the company needs a valid VAT invoice to enable it to recover VAT on its costs.

Not in all cases. See paragraph 8 of this judgment where the court allowed the company's claim for input vat even though none of the invoices challenged by HMRC were addressed to the company!

Praesto Consulting UK Ltd v HM Revenue and Customs [2019] EWCA Civ 353 (11 March 2019)

 

[Argentum Tax]

Not in all cases. See paragraph 8 of this judgment where the court allowed the company's claim for input vat even though none of the invoices challenged by HMRC were addressed to the company!

Of course, not in all cases would the input tax be non-deductible. However the Praesto Consulting case depends very much on the facts of that particular case, and those facts are not the same as, nor anywhere near, the facts that the OP sets out in his case.

The Praesto Consulting case is unlikely to persuade HMRC to allow the deduction of input VAT in the OP's particular circumstances. I agree with @MyAccountantOnline that it seems unlikely that HMRC would exercise discretion in this case.

The OP would be best advised to go back to the retailer and ask them for a VAT invoice addressed to the company rather than the individual. I don't know whether John Lewis are inclined to do such a thing.

 

[DontAsk]

When I had a day job I would regularly make purchases and expense them. Everything was fine, so long as I had VAT invoice, even if it was made out to me. No VAT invoice and the finance lady would give you a very stern telling off as she would not be able to offset the input VAT.

 

[Argentum Tax]

When I had a day job I would regularly make purchases and expense them. Everything was fine, so long as I had VAT invoice, even if it was made out to me. No VAT invoice and the finance lady would give you a very stern telling off as she would not be able to offset the input VAT.

@DontAsk Have you read paragraph 19.5.5 of VAT Notice 700 a link to which was kindly posted by @MyAccountantOnline in an earlier post?

If you do so you will understand why your expensed purchases might well have given rise to a VAT deduction. However this does not mean that the OP's purchase of a new phone (which I suspect would have cost more than £25) would similarly give rise to a valid input VAT deduction.

 

[Gyumri]

the Praesto Consulting case depends very much on the facts of that particular case, and those facts are not the same as, nor anywhere near, the facts that the OP sets out in his case.

I think the facts are quite similar and in the OP's case is position is even stronger: he purchased a phone for his business using the company's business card.

The fact that the invoice is addressed to him because his name appears on the card is not the end of the world and the company could rely on that invoice to reclaim input VAT.

It is most unlikely that an HMRC inspector would disallow the input vat although it's obviously preferable for invoices to be in the company's name to avoid any kerfuffle.

 

[Argentum Tax]

I think the facts are quite similar and in the OP's case is position is even stronger: he purchased a phone for his business using the company's business card.

You say that “the OP… purchased a phone for his business…” You have tellingly, but probably inadvertently, fallen into the very trap that HMRC would use in disallowing the VAT deduction on the new phone.

The paperwork (the VAT invoice from John Lewis) evidences, rightly or wrongly, that the OP himself purchased the phone and, as such, the company is therefore not entitled to deduct the input VAT.

The OP should have pointed out to John Lewis that he was purchasing the phone on behalf of the company, and he should have asked them to issue the VAT receipt in the name of the company.

The OP is best advised to ask John Lewis if they will correct the position by reissuing their invoice in the name of the company. It is up to John Lewis whether they will do this. If they do so the OP would have no issue with claiming the input VAT deduction.

Similarly with the company’s Corporation Tax deduction or capital allowances claim on the phone, it would be best evidenced in an invoice addressed to the company.

 

[Gyumri]

The paperwork (the VAT invoice from John Lewis) evidences, rightly or wrongly, that the OP himself purchased the phone and, as such, the company is therefore not entitled to deduct the input VAT.

Yes but he purchased the item for his business using the company's money via its credit/debit card. Are you suggesting that the company is not entitled to deduct input vat on its next return because the invoice is not in the company's name?

I think as the purchase was definitely made in the company's behalf that input vat would be allowed without the OP breaking out in a cold sweat. But yes generally you would be right that a properly addressed invoice would be better although not essential.

VAT: Should An Invoice Always Be In The Name Of The Business? - Tax Insider

www.taxinsider.co.uk

 

[NEF]

I purchased the phone on John Lewis using Apple Pay which is setup on my phone utilising my Barclays business account, so business card used for a legitimate business expense , but the company name was not added via John Lewis. After speaking to a few people, they said it doesn't matter and I can claim the vat back... Thanks

 

[LPB 123]

Did you buy from John Lewis or John Lewis business? Presuming the former as I can't imagine their dedicated B2B section missing out the company name on their invoices?

I generally always put the company name in the name column as well in case companies miss it out on their invoices. Most of the time it means the company name appears twice as the name and first line of the address but when it only appears once I know we would have been in the same situation as you.

I personally would still claim it but would also politely ask JL to reissue the invoice to include your company name anyway as maybe they will oblige. If they don't does your Google Pay account does it mention the company name on the payment confirmation or in confirmation emails etc? I would keep these as well in case challenged by HMRC.

 

[TheSkyisGray]

Is it a company phone? So is the phone contract in the name of the company?

 

[NicoJ]

Is it a company phone? So is the phone contract in the name of the company?

Beat me to it. OP - you have asked about VAT, have you considered the personal tax element of this? If the phone is in your name and the company paid for it then you have a BIK.

 

[LPB 123]

Is it a company phone? So is the phone contract in the name of the company?

Do John Lewis offer contracts or only sim free phones?

Surely the separate phone contract has to be in the company name otherwise it would really change things.

 

[DontAsk]

Did the phone cost more than £250?

 

[Argentum Tax]

Yes but he purchased the item for his business using the company's money via its credit/debit card. Are you suggesting that the company is not entitled to deduct input vat on its next return because the invoice is not in the company's name?

@Gyumri No, you are implying that I am suggesting that.

What I am saying is the same as the Tax Insider article that you quoted says; that it is far better to obtain an invoice in the right name in the first place, and if it happens that the invoice is not in the right name it is better to ask the supplier to re-invoice in the correct name than to risk challenge by HMRC.

@NEF If one does not have an invoice properly addressed then the risk is that upon enquiry HMRC will seek to disallow the input VAT deduction already claimed, quite possibly with the addition of a penalty charge for an incorrect VAT Return.

Before I am again contradicted, I know well enough that the odds are that in the real world the claim for input VAT would quite possibly slip through and not be challenged, or even not noticed, but you, @NEF, should know that the risk is there.

 

[Argentum Tax]

After speaking to a few people, they said it doesn't matter and I can claim the vat back... Thanks

@NEF Well, even a few people can all be wrong, and that's why you were right to ask in this forum for professionally experienced and qualified opinions. You have had quite a range of opinions.

It does in fact matter, but given the practical realities it might have no consequences to be lacking in the correct paperwork. The risk is yours. Best of luck!

 

[NEF]

@NEF Well, even a few people can all be wrong, and that's why you were right to ask in this forum for professionally experienced and qualified opinions. You have had quite a range of opinions.

It does in fact matter, but given the practical realities it might have no consequences to be lacking in the correct paperwork. The risk is yours. Best of luck!

I work for a large UK company also. We have an expense system called Concur, sometimes I have flight expenses, accommodation, etc . None of these have the company name on them and they are submitted and we have to select a VAT invoice is present.

How do these large companies claim all this vat back for employees with none of the receipts in the companies names , these are large companies within the FTSE 100 . How can they do this, as they stick vigorously to he letter of the law...

 

[Gyumri]

How do these large companies claim all this vat back for employees with none of the receipts in the companies names , these are large companies within the FTSE 100

From the link I posted above:

"These costs are normally paid to the employee through an expenses claim, and HMRC accept that if the business is prepared to authorise payment of these costs they are legitimate business expenses and allow input tax deduction, even though the invoice is addressed to an employee rather than the business."

 

[Argentum Tax]

I work for a large UK company also. We have an expense system called Concur, sometimes I have flight expenses, accommodation, etc . None of these have the company name on them and they are submitted and we have to select a VAT invoice is present.

How do these large companies claim all this vat back for employees with none of the receipts in the companies names , these are large companies within the FTSE 100 . How can they do this, as they stick vigorously to he letter of the law...

If you read the Tax Insider article, already posted by @Gyumri yesterday, you will understand that there is an exception in the treatment of expenses claims by employees, whereby HMRC do not always insist on an invoice addressed to the employer. In your case you are purchasing a mobile phone and have an invoice addressed to you. Some HMRC VAT inspectors might effectively treat your payment on a company card as an expense claim, whilst others might not and insist that you should have a proper VAT invoice addressed to the company.

From my own experience of many years working in tax, I would dispute that large companies within FTSE 100 always "stick vigorously to the letter of the law". They do not, and it is well known that they can often be caught out in a VAT or PAYE inspection and have to make very significant monetary settlement offers to HMRC.

 

[TheSkyisGray]

Do John Lewis offer contracts or only sim free phones?

Surely the separate phone contract has to be in the company name otherwise it would really change things.

Yes it certainly would. While the cost may be a legitimate business expense as set out in one of the OP’s posts, the costs would have to be included on a P11D if there is no BIK exemption available.