Do your claimants know the importance of a VAT receipt?

Asking your claimants to produce a VAT receipt can help your business reclaim the maximum amount of VAT for their employee expenses. Yet, enforcing this policy could potentially prove difficult.

The majority of claimants simply want to enter their claim and be reimbursed in the quickest possible way. This doesn’t help the finance team who would ideally like to streamline the expenses claim process whilst ensuring it is done accurately and more importantly that they reclaim the maximum amount of VAT and pay the correct amount of corporation and PAYE taxes.

To claim the VAT incurred through employee expenses you are required to have a receipt that has both a VAT number and a VAT amount. But for this to happen you are heavily reliant on your employees asking for a VAT receipt at the time of the transaction.

In a recent survey, we found that many businesses were under-claiming the amount of VAT they were entitled to, simply because claimants were not producing VAT receipts which detailed each claim item individually and how much VAT was applied to the transaction. The main area where VAT is under claimed is hotel bills.

Expenses utilises the powerful reporting wizard to identify how much VAT you are loosing, where the receipts are missing and which claimants are the worst offenders who aren’t producing VAT receipts. Allowing you to contact them directly and request that when they make future claims they obtain a VAT receipt, or deduct the missing VAT from their claim.

If you would like to learn more about the importance of a VAT receipt and how Expenses process’s VAT automatically please call 01522 881300 or visit: www.expenses-software.com