Originally posted by ContrataxLtd
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Expenses Reimbursement from Client for Contract inside IR35
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'CUK forum personality of 2011 - Winner - Yes really!!!! -
The general principle of IR35 is you are really an employee so you are entitled to whatever an employee is. Money given to an employee to come to work or have lunches is taxable as a benefit-in-kind but travelling between locations is not taxed."Don't part with your illusions; when they are gone you may still exist, but you have ceased to live" Mark TwainComment
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Many thanks all for your comments. Based on these I have gone back to my accountant and explained him that the travel to another location is on a need basis as and when required by the client and not something i would do regularly. He seems to now agree that it is an allowable expense which shouldn't be taxed and has promised to revert back with more clarity.Comment
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Originally posted by skLondon View PostMany thanks all for your comments. Based on these I have gone back to my accountant and explained him that the travel to another location is on a need basis as and when required by the client and not something i would do regularly. He seems to now agree that it is an allowable expense which shouldn't be taxed and has promised to revert back with more clarity.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by TheCyclingProgrammer View PostYou don't have to add VAT to the gross amount, whether you rebill gross or net is between you and client.
https://www.gov.uk/guidance/vat-cost...d-to-customers
The only time you don't charge VAT is if you're not registered, it's for a non VATable item (childrens' clothes and the like) or you're being paid cashSee You Next TuesdayComment
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Originally posted by Lance View PostYou don't have to add VAT to the gross amount, whether you rebill gross or net is between you and client.
https://www.gov.uk/guidance/vat-cost...d-to-customers
HMRC only care about the + VAT bit.
You're right that it's not a disbursement - it rarely is.Comment
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Originally posted by Lance View PostI'm pretty sure the only time you can do that is for a disbursement. And expenses are most certainly not a disbursement.
https://www.gov.uk/guidance/vat-cost...d-to-customers
The only time you don't charge VAT is if you're not registered, it's for a non VATable item (childrens' clothes and the like) or you're being paid cash
On the subject of non-VATable items, if you've incurred a non-VATable cost and are re-charging it to your client, and it isn't a disbursement, then you should still be charging VAT as the re-charge is part of your fee.Comment
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Originally posted by TheCyclingProgrammer View PostWhat Contreras said. You're right, it's not a disbursement, but what you re-charge (net) for your associates costs is up to you (or a matter of contractual agreement with the client). HMRC only care that you charge VAT on top, not the rate at which you recharge expenses.
On the subject of non-VATable items, if you've incurred a non-VATable cost and are re-charging it to your client, and it isn't a disbursement, then you should still be charging VAT as the re-charge is part of your fee.
Gotcha. I thought the suggestion was that VAT was optional......See You Next TuesdayComment
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