Client will not accept invoice and VAT charge for expenses

[meanttobeworking]

@LisaContractorUmbrella - thanks very much!

[Robot]

I've completed an expense claim form (provided by the agency) and a copy of the receipts.

They've got back to me now, apparently I was told wrong on the phone, I should have invoiced them for it after all. Still unclear as to whether I should be adding VAT to it or not, but have sent their accountant guy two invoices, one with VAT and one without.

I seem to gather from the above that if I'm invoicing them and I'm VAT registered, I have to charge VAT. Would you agree?

I appreciate your help!

Yes but, example

Train Fare £ 50.00 (excludes VAT)
Hotel £120.00 (includes VAT)

Sales invoice / expenses claim

Expenses £150 (note you take the VAT off the hotel bill)

VAT @ 20% 30
---------
£180.00

Some agencies don't bother about extracting the VAT on the expenses, some do, especially the ones that deal with banks. VAT on VAT as some said above, the bank cannot reclaim the input VAT.

Cheers

Robot

[meanttobeworking]

Thanks Robot, all these costs were incurred in USA, so no VAT is included on original costs. Appreciate your reply.

[LisaContractorUmbrella]

@LisaContractorUmbrella - thanks very much!

You're welcome