08-05-2005, 01:40 AM
Hi,
I do work for two ltd companies, both owned by one guy...now sometimes one company pays the other companies fuel bill or other expense.
The owner says I should invoice the company with VAT, as they have paid. But the company paying is not selling fuel or any other product to the second company...it has just paid for something on behalf of them. Therefore it is just a short term loan/debt and nothing else?
Also I presume as the invoice was in the second companies name, the second company would report that as an expense, and VAT, and not the first comapny...once again would just report a loan for the total amoount....Also I presume he wants to invoice the comapny as he would then have an expense in both compnaies and VAT to use?
Can anyone clear up the correct procedure to this situation...I hope I have explained it clearly enough
I do work for two ltd companies, both owned by one guy...now sometimes one company pays the other companies fuel bill or other expense.
The owner says I should invoice the company with VAT, as they have paid. But the company paying is not selling fuel or any other product to the second company...it has just paid for something on behalf of them. Therefore it is just a short term loan/debt and nothing else?
Also I presume as the invoice was in the second companies name, the second company would report that as an expense, and VAT, and not the first comapny...once again would just report a loan for the total amoount....Also I presume he wants to invoice the comapny as he would then have an expense in both compnaies and VAT to use?
Can anyone clear up the correct procedure to this situation...I hope I have explained it clearly enough
