Originally Posted by
roberino
Jumping ahead, let's assume that I've waited a month or two, called the hotel and they're happy, called the CC company and they're happy and then discussed it with my employer and I agree to pay the money back somehow. How does this rebate get managed? If it comes off my pay packet then I am effectively getting tax relief on an expense claim (less gross pay = less PAYE) which will presumably catch up with me eventually, but also a lower pension contribution that month. Will this get spotted if I get inspected by HMRC?
They wouldn't take it out of your gross, then calculate deductions. They'd take it out of your net after deductions.
Originally Posted by
roberino
From the company's POV, if they simply take it off my next reimbursement for expenses then when they get audited won't that flag up and cause a headache, especially cross-quarters? My employer also has to undo any reclaim of VAT that they may have made, don't they? Any accountants out there got a suggestion?
700GBP is likely not material. It's also easily explainable. I don't think an auditor would spend much time on this. As for VAT calculations, all the info from the original claim is in the system, they should have the journal entry that was booked. Again though...materiality comes into play.
On a side note, I had to pay back an expense claim to my company a couple years ago because I got double paid...they asked for a cheque. Kind of silly that it couldn't be handled electronically, but whatever.