Hi – I’m surprised to see that employee expenses, which are payable through payroll, are being accounted for in a VAT3 as part of the T2 figure. I thought that VAT on expenses could not be reclaimed…???
But, they were purchased for the company.
The term ‘expense’, is a broad term. Like people say I paid my credit card bill, it’s actually a credit transfer, the bills are the line items in your credit card.
6 years of automated VAT returns!