Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Sales force VAT

17 April 2012
Issue: 4349 / Categories: Forum & Feedback , VAT
An employed sales force use their own cars and phones and they are reimbursed for the business use element by the employer

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

...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon