Should i charge vat on expenses

Generally the amount rebilled usually includes the full amount paid. Many thanks in advance. Hi Emma. If the company that you are invoicing is based in America then the goods should be zero rated and no VAT charged. What if I take a taxi in Germany? I am an interior designer and VAT registered. What do I put on the invoice? Day rate invoices — I always add VAT to the agreed rate to be invoiced. Therefore, if you paid for an expense that had VAT charged on it you should rebill the net amount then charge the VAT on this.

My partner has just gone vat registered as she is getting close to the threshold year on year and a lot of her clients are big vat registered companies.

If your partner is charging mileage to her customers then yes, that is correct, VAT must be charged on this amount. If the vehicle is only used for business then the VAT can be reclaimed on all fuel. However, if it is also used personally you must either pay a fuel scale charge or keep a mileage record and only reclaim the VAT on fuel that you use for business trips.

A company agreed to pay our lunch costs as coming in to give a CPD lecture. We are VAT registered. You can only recover VAT that has been charged by a VAT registered company or individual where an invoice has been supplied identifying the VAT registration number of the supplier. I am VAT Registered business doing construction, like bathroom renovations, painting, decorations etc.

She pays it. Then I have to send final invoice when job completed. Many thanks. If you do this at the net rate then add VAT you will recharge this to your customer at cost as what you paid is what your customer reimburses you for.

Do we have to charge VAT on this. Or can we break down the expenses and only charge vat on the expenses that are vatable. When a supplier or contractor incurs entertaining expenses as part of their service provision and then recharges them in full including any embedded VAT plus VAT on their invoice, do we need to disallow the specified expense and the VAT on it? Business entertaining is not an allowable expense for Corporation Tax purposes and therefore would be added back on the tax computation.

For this reason it is advisable that you request that your customer pays for any entertaining expenses rather than recharging them. This can be done by recharging the net value of the expenses or recharging the gross value however please be aware that HMRC have rules around business entertainment that restrict the recovery of VAT for these expenses. My Company provide a service which charges a given rate plus VAT to its customers.

In addition to the services my Company provides it also incurs charges for road tolls, overnight parking etc which are then charged to the customers invoice. The cost of the tolls and parking always include VAT yet I have always been advised to add VAT in addition to the total amount payed out. I was always told my Company should add VAT to the service charge and to all other costs incurred whether they are subject to VAT or not! Any help is appreciated hope you understand my waffling question?

When your limited company incurs a cost that is rechargeable to the client then VAT should be charged also. When your limited company picks up a cost on behalf of your end client then this is considered a disbursement and VAT may not be required to be charged. I am a contractor and I bill my client for travel expenses. Mileage claims are based on pre-approved allowance rates set by HMRC. The 45 pence per mile is therefore a cash reimbursement for the cost of using a private vehicle in the role of business.

If you are invoiced by a VAT registered supplier for mileage then they are required to charge VAT on this expense as it forms part of the overall invoice. I have incurred expenses in an EU country that I am claiming back from my client.

Hi, We are a small recruitment firm who have some contractors going to work for a client of ours, and they are allowed to reclaim expenses such as mileage, hotel, train etc. They are all being paid via umbrella and not through their own business. These expenses will be reimbursed by us to them and then subsequently billed by us to the end client.

My question is that these expenses will have VAT included, so what do I bill the end client? Many thanks for any guidance on this matter! Hi Craig When billing an end client for a recharged expense that has VAT on it, these can be raised at the net value and the VAT will be calculated as normal and charged to the end client correctly. As you are repaying the contractor for expenses then you should be able to recover the VAT and therefore you are not out of pocket.

Our software allows the contractor to select the appropriate VAT rate for expenses and then tick them as billable to ensure the correct treatment when raising these types of charges to their end clients.

Hi I have a client who is based in a jurisdiction where there is no VAT, and they have been invoiced by a UK VAT registered company for expenses whilst working on a contract.

If the jurisdiction is outside of the UK and EU then as long as the end client is a business then no VAT generally needs to be charged. I think I have made a mistake throughout my entire first year of trading as a limited company.

I have worked for three different companies and none of them has said anything. How should I remedy this? I have 3 days left of my current company tax year! I would leave the transactions that you have already invoiced for and look at only charging VAT on top of the net expenses going forward.

We have a new client and have billed them a few times, but last week we incurred expenses other than mileage: a train ticket, underground contactless — no receipt , and food and he has asked for the original copies.

We have never given the receipts to any previous client and always attached them to our own credit card statements or expenses sheets. Your end client would need to keep a copy of the invoices you are raising to them for their records. I would advise speaking to your end client to discuss the responsibility of record keeping for VAT purposes. HMRC do state that suppliers can provide duplicated invoices if required as long as they are identified as such.

In this example from HM. Would VAT be chargeable on the full amount transferred. Hi Douglas, If you are a VAT registered business then it is only the amount that you recharge to your client that would be vatable i. You do not raise VAT on the actual amount of money being transferred just the cost incurred for making the transfer. Should they be charging us VAT on mileage considering that the workers they send to us are agency staff and not a direct cost to the agency themselves when it comes to mileage?

They have not been able to give me a satisfactory answer when it comes to the break down of these charges, hence my question. Agency staff can be a cost to the supplier as they would be employees of the agency. We are VAT registered as a UK company but have to recharge some expenses hotel, food, travel to another company that is within our group based in France, they have provided us with their TVA registered number.

When recording expenses as a reverse charge these can be included as gross if you wish. You need to ensure your reverse charge invoice has the required information on it to be a valid reverse charge invoice. Any Glasgow business eligible for the Coronavirus Business Support Fund can apply through the link below. We're in this together so don't hesitate to give us a call on to get the support you need NOW.

Expenses and Disbursements Costs you may wish to recharge to your clients fall into two categories — expenses and disbursements — which are dealt with differently. Disbursements A disbursement is a cost to your business that is purchased for the use of the client.

Expenses Expenses are costs that relate to you, such as your travel expenses or business phone calls. Should I recharge all my expenses? Do I need a bookkeeper? Are you a small business owner, or someone contemplating starting their own business?

Read more. VAT on imports is charged on the Customs value of the goods. This means that the amount on which VAT is chargeable is not only the charge for the goods or services supplied. It also includes incidental charges incurred by the supplier which are passed on to the customer. A consultant's fee for providing a consultancy service might include costs and expenses as follows:. Where payment is received by credit card, the taxable amount is the total amount actually charged to the customer by the supplier.

Amounts withheld by the credit card companies from their settlements with the traders concerned, form part of the taxable amount. Consideration for goods or services can be made in a number of forms. Examples of which include cash and payments in kind. Payments in kind can include:. Published: 12 August Please rate how useful this page was to you Print this page. It looks like you have JavaScript disabled. Certain parts of this website may not work without it.

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