Claiming expenses while in Germany through UK agency

[richy]

Hi all.
I'm contracting in the UK through my ltd. End-client has sent me to Germany for a bit, and said would reimburse for the hotel+eveningfood+travel (all good!).

I submitted expenses claim invoice to agency (Progressive), i enter the gross figure in pounds and didn't tick the "Excluding VAT", came to around £200. Now I received the money from agency.. and they've paid me 15% more than I asked for.. There isn't even an option on their online system for me to issue a credit note, and for the £30 I've gained it has created me more hassle than I have gained.

As the invoice has all been processed at agency I can see it would be major hassle to try and reverse it now. Also I've got more expenses claim invoices pending.. so I'm wondering if they will come out wrong too. Anyone else with same agency? (Huxley,Comptuerfutures and Progressive are in same group I think)

My questions are:
1. I convert all the Euro receipts into Pounds at the rate I got from the cash machine, this seems reasonable and acceptable to me, is this the right way to do it?

2. German VAT is 18% does this make any difference? I think it is just the end-client that would be the one to do anything about claiming VAT.

3. My understanding is I won't actually show the hotel+eveningfood+travel on my accounts, I should just show the £200 invoice in my "Incomings" as a contra, and then in my Outgoings back to my personal account. Is this the right way to do it? As basically in incured the costs on their behalf.

4. For the additional £30 I got paid, I've separated this bit and marked it as income, as I can't do anything else with this.

Any help understanding appreciated!
Cheers, rich

[lexington_spurs]

You're billing them via a UK invoice, so you charge the total expenses +UK VAT.

If you were billing the German end company direct, you'd just charge the total expenses.

I am not an accountant!

[Little'Old Me]

You're billing them via a UK invoice, so you charge the total expenses +UK VAT.

If you were billing the German end company direct, you'd just charge the total expenses.

I am not an accountant!

Lexinton is correct (and I am an accountant ).

Your agency is reclaiming the £30 as VAT, so you should pay it to HMRC as VAT, not include it as your income. The German client can only reclaim the VAT if the invoices are in their name. (The German authorities are very strict/rigid as they will not allow reclaim of VAT if the invoices are in any other name).

[richy]

Lexinton is correct (and I am an accountant ).

Your agency is reclaiming the £30 as VAT, so you should pay it to HMRC as VAT, not include it as your income. The German client can only reclaim the VAT if the invoices are in their name. (The German authorities are very strict/rigid as they will not allow reclaim of VAT if the invoices are in any other name).

Perfect, thanks guys!

So my receipts translated from Euros->Pounds are just the Net figure on my invoice, that makes sense. So it is treated as a regular income then, with the £200 going to my personal account based on a subistence claim to my ltd co, and £26.45 going to VAT man for my FlatRateVAT (230*0.115). Leaving the ltd £3.55 profit too!

If the expenses were incured in the UK would it be different though? would it need to feature at all in my accounts? i.e. could it just be a contra, in and out again to my personal account.

Thanks, Rich

[darmstadt]

2. German VAT is 18% does this make any difference? I think it is just the end-client that would be the one to do anything about claiming VAT.

19%

[richy]

Progressive confusion

I realised the Progressive "Create claim" workd differently than I had expected. It's not really clear.

There is a: Exclude VAT [ ], Total [ .... ]

I asumed if I tick the exclude box no VAT would come into it. In which case I should add on 15% VAT, and enter that into the box.

However.. it works contrary to that, the Total is actually looking for the Net figure, as their system will then add on the 15% VAT on top of what I enter.

are other agencies invoicing systems also pretty cack?

Cheers, rich.