Andrew Needham looks at the recovery of VAT on accountancy fees and personal tax work.
A business will incur accountancy fees on having its annual accounts prepared as well as tax computations for the business. These are legitimate business expenses and any VAT charged on these fees can be legitimately recovered through the business's VAT registration.
However, the same accountant will often undertake tax work for the business owners, partners or directors (e.g., the preparation of personal tax returns). These costs are proper to the individual rather than the business, so can the VAT on these costs be recovered?
VAT on personal tax advice
HMRC views personal tax advice provided to sole proprietors and partners differently from that provided to company directors.
A sole trader’s or a partnership’s accountancy costs generally
