Originally posted by northernladuk
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First time contracting, looking for good accountants
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VAT query
Hi
my company is VAT registered and am invoicing expenses to my client.
Having read the VAT guide on the right, I am no fully convinced my query is answered.
I have to claim £100 on a train ticket. This is classed as 0% VAT.
I purchased it using my own money (not my company's) and added that as an out of pocket expense in free agent.
Now when I invoice this to my client, am I correct in adding 20% VAT on top of claiming the £100 back even though when I purchased them , train tickets are at 0% VAT? This is what my accountant has told me but I want to double check why am I charging them VAT when there was no VAT that I was charged when buying the train tickets.
thanksComment
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Originally posted by ContractingBrit View PostHi
my company is VAT registered and am invoicing expenses to my client.
Having read the VAT guide on the right, I am no fully convinced my query is answered.
I have to claim £100 on a train ticket. This is classed as 0% VAT.
I purchased it using my own money (not my company's) and added that as an out of pocket expense in free agent.
Now when I invoice this to my client, am I correct in adding 20% VAT on top of claiming the £100 back even though when I purchased them , train tickets are at 0% VAT? This is what my accountant has told me but I want to double check why am I charging them VAT when there was no VAT that I was charged when buying the train tickets.
thanks
https://www.contractoruk.com/forums/...-expenses.html
Your accountant can also help you with queries like this of course.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by ContractingBrit View PostNow when I invoice this to my client, am I correct in adding 20% VAT on top of claiming the £100 back even though when I purchased them , train tickets are at 0% VAT? This is what my accountant has told me but I want to double check why am I charging them VAT when there was no VAT that I was charged when buying the train tickets.
The basic logic is that train ticket is for you, not your client, and your company does not sell train tickets. Your company sells your time/skills, which are VATable. The fact the client has agreed to pay you a bit more for your services to compensate for some costs you've incurred isn't relevant from the perspective of VAT on your sales.Comment
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aah okay, great thanks.
I do trust my accountant but, being a nervious newbie, I just wanted to double check.
cheersComment
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Originally posted by Maslins View PostYou should trust your accountant! Why pay for one if you're going to double check the answers they give with a bunch of randoms on an internet forum?!Comment
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