Hi – I’m surprised to see that employee expenses, which are payable through payroll, are being accounted for in a VAT3 as part of the T2 figure. I thought that VAT on expenses could not be reclaimed…???

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Hi – I’m surprised to see that employee expenses, which are payable through payroll, are being accounted for in a VAT3 as part of the T2 figure. I thought that VAT on expenses could not be reclaimed…???

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Peter Connor ⋅ Staff February 10, 2017
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But, they were purchased for the company. 
The term ‘expense’, is a broad term. Like people say I paid my credit card bill, it’s actually a credit transfer, the bills are the line items in your credit card. 
6 years of automated VAT returns!

#answer-4761
  1. Ed4 February 10, 2017
    Thanks - it wasn't a criticism of bullet per se but we added said expenses after the VAT3 was closed and now the figures don't add-up. So it's back to the beanie :)
  2. Peter Connor February 10, 2017
    Just shift them into new vat period.
  3. Ed4 February 10, 2017
    It that possible if they've already been reimbursed through payroll?
  4. Peter Connor February 10, 2017
    I'm lost. To get them into payroll you have to submit them, as in create the bills/expenses.
  5. Ed4 February 10, 2017
    I'll figure something out myself.

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