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This guidance note looks at whether VAT incurred on a number of common kinds of employee related expenditure can be considered to be ‘input tax’ for VAT purposes. The following kinds of expenditure are considered:

1. •

   subsistence (meals, hotels and accommodation)

2. •

   computers and mobile phones for staff

3. •

   home office costs

4. •

   removal and relocation costs

5. •

   uniforms and clothing

6. •

   other staff benefits and perks

Input tax on buying and leasing vehicles and on other motoring expenses are covered separately in the Input tax - buying and leasing cars and other vehicles and Input tax - motoring expenses guidance notes. Business and staff entertainment expenditure is covered in the Input tax - staff and business entertainment guidance note.

Remember that even if VAT incurred on costs is ‘input tax’ it will not necessarily follow that it can always be recovered. In particular, a business will need to consider the issues set out in the Input tax - conditions for recovering VAT and Partial exemption - overview guidance notes.