My client just paid some expenses (ca 1500£) for a business trip on their behalf. I paid expenses using my personal credit card and submitted an expense claim form along with an invoice, in order for the agency to make a payment. The invoice reference is ordered sequentially similar to regular invoice (ABC-121-11). The client paid to my ltd company account and I will pay the same amount to my personal account. I did not charge any premium or VAT on the expenses.
Now my accountant is moaning that I should not issue an invoice for the business expenses as this could be deemed as (taxable) income so I should always issue an expense claim form (Memo) to the agency/client.
The agency accountant insists that there must be an invoice with an expense claim form for any payment they make,.
Generally I use expense claim form to record my business expenses such as mileage, stationary etc. Can anyone advise the right approach and if there is really a problem in issuing an invoice for getting the expenses reimbursed by the client?
Thanks
Now my accountant is moaning that I should not issue an invoice for the business expenses as this could be deemed as (taxable) income so I should always issue an expense claim form (Memo) to the agency/client.
The agency accountant insists that there must be an invoice with an expense claim form for any payment they make,.
Generally I use expense claim form to record my business expenses such as mileage, stationary etc. Can anyone advise the right approach and if there is really a problem in issuing an invoice for getting the expenses reimbursed by the client?
Thanks
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