Do reinbursed expenses count as income?

[IanIan]

Hi there,

I stayed in a hotel for a week and spent money driving there. I included these expenses in the invoice I sent and the client reinbursed me in full.

Should these expenses stay off the tax return?

Cheers, I.

[VectraMan]

Which tax return? It's part of the company's income, not yours.

[dude69]

Which tax return? It's part of the company's income, not yours.

I assume he is referring to the Corporation Tax return.

[dude69]

Hi there,

I stayed in a hotel for a week and spent money driving there. I included these expenses in the invoice I sent and the client reinbursed me in full.

Should these expenses stay off the tax return?

Cheers, I.

You should have charged VAT on the expenses. You still owe it to HMRC, whether you did or not.

The expenses are allowable expenses for calculating your CTable profits, because they are not entertaining (entertaining is not allowable).

[IanIan]

Sorry, I mean my own personal tax return. The work and expenses were the result of my own contracting. And I don't earn enough to charge VAT.

[minstrel]

Sorry, I mean my own personal tax return. The work and expenses were the result of my own contracting. And I don't earn enough to charge VAT.

If you paid it personally, your client paid it to YourCo and then YourCo paid it back to you, then you need to declare it on your personal tax return.

If your company paid the expense direct e.g. company credit card, then you don't need to declare it.

[IanIan]

Ahh, I don't have a company. They paid me a personal check after I paid for it personally.

Cheers for the response...

[NotAllThere]

Reimburse

[Ardesco]

Sorry, I mean my own personal tax return. The work and expenses were the result of my own contracting. And I don't earn enough to charge VAT.

Ahh, I don't have a company. They paid me a personal check after I paid for it personally.

Cheers for the response...

Umbrella then? (although I can't understand why you brought VAT into it)

[VinnyB]

If you paid it personally, your client paid it to YourCo and then YourCo paid it back to you, then you need to declare it on your personal tax return.

Would this only be appropriate if it generated a BIK?