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Readers’ forum: Food for thought

25 August 2020
Issue: 4758 / Categories: Forum & Feedback
Input tax on expenses of self-employed pub manager.

One of my clients owns two pubs in different parts of the country. As a result of the Covid-19 crisis he made both pub managers redundant and following the reopening in July both venues are being run by self-employed managers in the short term.

My client has agreed to pay the food and overnight accommodation costs for one of the managers because the pub is 150 miles from where he lives.

My concern is VAT: is input tax blocked on the food and hotel bills because the manager is not an employee of the business? It would not be VAT efficient for the hotel and restaurants to invoice the manager and the manager recharges my client on his sales invoice because the manager is not VAT registered so would be recharging the VAT inclusive value of the expenses.

Query 19 608 – Queen Vic.  

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