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Quick VAT question - claiming on bills not in my name

  • 15-05-2016 11:03AM
    #1
    Moderators, Sports Moderators Posts: 42,984 Mod ✭✭✭✭


    Hey all,

    Quick question for you all this morning. I've recently had to start paying VAT on my business.

    Can I claim back VAT from bills that are not in my name, provided they are business related? I've been reading about it online a bit, and I've seen about claiming percentages back based on how much of the house is used for business, how often I use my phone for business, etc.

    But since I'm still living at home, a lot of the bills would be in the parents' name. As an example, as an internet based business, I pay the internet bill myself from my own bank account. However, it's in my father's name (has been for years, from before I started the business). Can I claim back a percentage of the VAT on my monthly internet bill despite this, provided I have the documentation and the justification about how it's vital to the business and an expense I pay?

    On a similiar note, does anyone have advice on working out what percentage to claim? With the internet, its vital so I'd expect to be able to claim a big chunk back. My mobile phone is business only, really, so I'd be claiming most of it. But can I claim back a percentage of the heating bill (need to be warm when working) or the electricity bill (without which I have no computer to work on)? How do I work out the percentages in that case?

    Thanks in advance guys :)


Comments

  • Registered Users, Registered Users 2 Posts: 4,686 ✭✭✭barneystinson


    Lord TSC wrote: »
    Hey all,

    Quick question for you all this morning. I've recently had to start paying VAT on my business.

    Can I claim back VAT from bills that are not in my name, provided they are business related? I've been reading about it online a bit, and I've seen about claiming percentages back based on how much of the house is used for business, how often I use my phone for business, etc.

    But since I'm still living at home, a lot of the bills would be in the parents' name. As an example, as an internet based business, I pay the internet bill myself from my own bank account. However, it's in my father's name (has been for years, from before I started the business). Can I claim back a percentage of the VAT on my monthly internet bill despite this, provided I have the documentation and the justification about how it's vital to the business and an expense I pay?

    On a similiar note, does anyone have advice on working out what percentage to claim? With the internet, its vital so I'd expect to be able to claim a big chunk back. My mobile phone is business only, really, so I'd be claiming most of it. But can I claim back a percentage of the heating bill (need to be warm when working) or the electricity bill (without which I have no computer to work on)? How do I work out the percentages in that case?

    Thanks in advance guys :)

    Just gonna play devil's advocate here. Re the internet, you say it pre-existed your business, so if you weren't running your business would the same domestic phone/broadband service not be in place? In which case how do you establish that any proportion of it is incurred by your business?


  • Registered Users, Registered Users 2 Posts: 535 ✭✭✭dogsears


    First - can you get any of the bills into your name? The rules relating to VAT invoices (which have to be in place to support a VAT reclaim) are quite stringent as to what details have to be shown etc. So claiming for invoices not in your name may be problematic in that sense. On a bad day, a Revenue auditor could decide to deny the amount claimed on that basis even if your explanation is reasonable and accepted. On a good day, you could expect then to take a pragmatic view. Still, getting the bills in your own name would help.

    As regards claiming part of the expense against your profits, the name on the invoice is probably less of a problem so long as you can show what you paid and justify the need to pay it. Regarding the proportion, make an honest judgement of what you actually think it should be - you probably could estimate heating based on floor area, internet based on time, ESB you could be quite exact based on wattage etc, but that's a lot of work and a time basis would probably be OK etc. So long as you aren't overly favouring yourself I would doubt the Revenue would have a problem. The more documentation you can retain to support whatever you do the better.

    Re Barney's point above, I would think that whatever happened before, if the current actual use is mainly yours and you pay the bill, you get to claim it, or at least a proportion.


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