Pay/claim expenses or let customer pay direct

[northernladuk]

You are all a set of cockwombles.

That's all.

Thank you

[pmeswani]

I have to do some travelling in my current contract which is is going to involve some long haul flying and hotels so is not going to be cheap. I have been given the option to claim the reciepts from my employer or me pay and invoice them back via my Ltd Company. they are very flexible in this matter.

Thoughts I have had are.

Vat - No difference as I am on flat rate.

Tax - This wouldn't affect my profit due to me paying it out and claiming it back so no real effect. Is this right?

Interest in bank - Pretty irrelevant.

After that am a bit stuck. I can't think of any other tax/finacial incentive between the two but would have thought there was something even if its fairly minor.

Any tips appreciated.

Firstly, stop thinking like a permie. The client is not your employer, but your client. Personally, I would put it through your Ltd company and charge the client for the cost (If they have agreed to it), or let the client book the flights directly for you and let them sort it out, assuming you cannot afford to pay for it yourself.

[RichardCranium]

I think I have this right:

Add 'incurred costs' to your invoice. That way VAT gets added to non-VAT items and YourCo can reclaim and keep that VAT.

[MPwannadecentincome]

I have to do some travelling in my current contract which is is going to involve some long haul flying and hotels so is not going to be cheap. I have been given the option to claim the reciepts from my employer or me pay and invoice them back via my Ltd Company. they are very flexible in this matter.

Thoughts I have had are.

Vat - No difference as I am on flat rate.

Tax - This wouldn't affect my profit due to me paying it out and claiming it back so no real effect. Is this right?

Interest in bank - Pretty irrelevant.

After that am a bit stuck. I can't think of any other tax/finacial incentive between the two but would have thought there was something even if its fairly minor.

Any tips appreciated.

I have found for flights and hotels - if my client pays directly it saves a lot of hassle, plus they get to be involved in the choice of flight / price etc rather than just getting a bill and saying "how much"?

Everything else its easier to invoice through your own company. I know some large companies used to add an admin handling charge as well, not sure if they still get away with doing that still!

[Bengal]

If you are providing services to a client through a LTD company the appropriate way is for your company to invoice for "disbursements". When HMRC consider IR35, one of the points they look at is how are expenses claimed paid for, if they are the same as an employee it could be a pointer towards you being within IR35.

[malvolio]

As I keep saying, not everything is about IR35, but f you can afford it, charge it to YourCo and add it to the invoice (with VAT) since that keeps everything under your control and demonstrates your independence from the client.

[Bengal]

As I keep saying, not everything is about IR35, but f you can afford it, charge it to YourCo and add it to the invoice (with VAT) since that keeps everything under your control and demonstrates your independence from the client.

Agreed!

[BrilloPad]

Have you asked your accountant?

[WordIsBond]

LOL. Great find.

I'll be saving this one for when I need it:

my employer

[BrilloPad]

LOL. Great find.

I'll be saving this one for when I need it:

I was expecting a ban for bumping a thread in professional. But it would be worth it.....