Purchasing hardware and claiming VAT on standard rate VAT

[TheCyclingProgrammer]

As I said before, how you actually pay isn’t important, if the invoice is issued to the company and you need to pay for it on your card I would record the transaction in your books showing the purchase of an asset paid for from the director’s loan account. You can repay this at your leisure.

If you’re buying online then enter YourCo in the billing address and request a VAT invoice from the supplier.

[Lance]

1) VAT issued receipt has to made in the company name

Yes. News to me but TCP is one of the better informed posters on here.

2) payment should really be made using direct company funds.

No. Personal CC is fine. Most online order places will let you use a personal card and put a company name on the invoice.

[ContractorBanking]

I wasn't explicit in my original posting, but I wish to claim back the VAT.

So, in summary, are we saying:

1) VAT issued receipt has to made in the company name
2) payment should really be made using direct company funds.

I would prefer to order the new hardware today and pay on personal credit card but if 2) is a must I need to wait for new company credit card to be issued before purchasing.

What's everyone else doing under these circumstances?

[TheCyclingProgrammer]

If that were true then I couldn't claim back VAT on my fuel (or hotels, or meals) that I pay for personally surely?
The invoice needs to have VAT on it and have a VAT number.

A general principle of VAT is that it can only be recovered by the recipient of the supply.

AFAIK HMRC will accept - at their discretion - VAT claims on certain out of pocket costs that employees normally incur and expense back to their employer (travel and subsistence) but a piece of equipment is not an employee expense - it’s a company expense (you are buying something that will belong to the company) and the invoice should be in the company name.

If an employee buys something on behalf of their employer then they should make the supplier aware of this and ask for an invoice to be supplied in the company name.

[Lance]

The receipt/invoice does need to be in the company name or you cannot reclaim the VAT.

If that were true then I couldn't claim back VAT on my fuel (or hotels, or meals) that I pay for personally surely?
The invoice needs to have VAT on it and have a VAT number.

[TheCyclingProgrammer]

The receipt/invoice does need to be in the company name or you cannot reclaim the VAT.

It doesn’t matter if you pay for it on a personal card, just account for it as a director’s loan, as the company owes you the money.

[Lance]

The receipt doesn't have to be in the company name.
You can pay for it yourself and claim as an expense.

Does it meet the "wholly and exclusively for business use" rule? There are some exceptions around computer equipment but if it is only for business use then you're fine.

[northernladuk]

What did your accountant suggest?

[ContractorBanking]

Morning all

Looking to purchase computer hardware and first time I've had to do so since I moved onto standard VAT.

I understand the equipment has to be in the company name on the receipt but can I purchase with a personal credit card or does it have to be paid directly from company funds (either credit card or invoice)?

thanks