Help Working from home during lockdown and need VAT invoice

[#1]

Hi there,

Am currently working from home using my personal plusnet account.  However, my employer is willing to pay for the broadband but needs a vat invoice to do so.  How can I get one or can I switch to a business account so we can have one.

[#2]

You can’t get VAT invoices on residential accounts but if you switch to a business account by calling 0800 013 2632 you’ll be able to get them moving forward

[#3]

Thanks, tried calling them but busy due to the bad weather etc.  So will call again.  Just wondered if anyone else had managed to switch to a business account from personal

[#4]

TBH I suspect that its going to be more trouble than it's worth given HMRC's guidance

Business use of a personal broadband service

HMRC guidance is quite clear under Section 316A ITEPA 2003. If there is already a broadband service in place at the Director’s (or employee’s) home, HMRC argue that there is no additional cost to you in using an existing broadband package for business use:

 “If an employee who begins to work from home under homeworking arrangements (see EIM01472) and is already paying for a broadband internet connection at home, there is no additional expense. The employer cannot, therefore, reimburse the employee’s broadband internet charges, tax free, under Section 316A. Any such payment that the employer may decide to make should be subject to PAYE and NICs”.

[#5]

I don't agree that is is more trouble than it is worth - the employee gets to pay PAYE on the Plusnet bill amount rather than paying the full amount.

An alternative is for the employer to simply pay £6pw or £26pm without needing to keep any specific records of what that covers (Section 316A ITEPA 2003).

BTW, there is nothing stopping the employer repaying the residential bill - other than the fact they cannot then reclaim the VAT element. Some employers are strict on being able to reclaim every penny, others take a more sensible approach.