09-21-2005, 03:51 AM
I am a little unsure re your question....
If the Co who is paying the bills is not directly invoiced - i.e it is not in their name, then they cannot reclaim the VAT.
The method you described is correct, but if he were to show this as a loan between 2 co's, he would need to show that he has acted in the interest of the 2 co's and that they have acted at arms length. This is what I think he is trying to achieve by invoicing the second co if the first company pays for any expenses on its behalf.
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http//www.accountancystudents.co.uk/forums/profile.php?mode=register&ruid=153
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If the Co who is paying the bills is not directly invoiced - i.e it is not in their name, then they cannot reclaim the VAT.
The method you described is correct, but if he were to show this as a loan between 2 co's, he would need to show that he has acted in the interest of the 2 co's and that they have acted at arms length. This is what I think he is trying to achieve by invoicing the second co if the first company pays for any expenses on its behalf.
Check this link - there are similar questions answered.
http//www.accountancystudents.co.uk/forums/profile.php?mode=register&ruid=153
--------------------------
See Ya
-)
Visit www.accountancystudents.co.uk
