Business trip and claiming expenses

[legal]

I need to visit my clients another office in Europe. I need to book everything myself and then claim back from client. So I had already booked flights and hotel and paid through my personal bank account.

I am not sure about the correct process of claiming these expenses back. I know that I shouldn’t be using permanent employ's claim form to do this. (IR35 issue!)

What am I supposed to do? Claim these expenses now from my own ltd co and then invoice client?? (What about VAT?). Or just claim back total cost directly from client, without my ltd co.

Also, so that I am not missing anything, I will be claiming:
1. Taxi from home to Airport
2. Flight
3. Hotel
4. Daily travel expense from Hotel to client site
5. Lunch ?? not sure
6. Evening meal
7. Xxx
8. xxx

[malvolio]

I need to visit my clients another office in Europe. I need to book everything myself and then claim back from client. So I had already booked flights and hotel and paid through my personal bank account.

I am not sure about the correct process of claiming these expenses back. I know that I shouldn’t be using permanent employ's claim form to do this. (IR35 issue!)

What am I supposed to do? Claim these expenses now from my own ltd co and then invoice client?? (What about VAT?). Or just claim back total cost directly from client, without my ltd co.

Also, so that I am not missing anything, I will be claiming:
1. Taxi from home to Airport
2. Flight
3. Hotel
4. Daily travel expense from Hotel to client site
5. Lunch ?? not sure
6. Evening meal
7. Xxx
8. xxx

It's one line on your invoice: you charge them what you spent, no more, no less with copies of receipts if they ask for them. (Personally I wouldn't claim lunch, since I assume people tend to eat anyway, but that's just me)

You do an expense claim on YourCo to get it back into your personal account (you do have an expense claim form, don't you...) plus £10 a day for unreceipted incidentals.

The two events are not interdependant.

HTH

[quackhandle]

What are numbers 7 & 8?

Don't think your client will appreciate being invoiced for mucky films.

qh

[legal]

What are numbers 7 & 8?

Don't think your client will appreciate being invoiced for mucky films.

qh

Nice one, those are place holders!

[NotAllThere]

It's one line on your invoice: you charge them what you spent, no more, no less with copies of receipts if they ask for them...

And add VAT.

[Contreras]

What am I supposed to do? Claim these expenses now from my own ltd co and then invoice client??

Yes, exactly that ^^.

Btw, YourCo could just as easily have paid for the expenses directly.

What about VAT?

Every service or product you bill the client for you must add VAT and this is no exception. Think of it this way: All the expenses you mentioned are component parts that you have consumed* and are selling on with added value. It is no different than if you were making and selling widgets.

* The fact that you have consumed the services is an important point. If, for example, you paid for something on behalf of one of the client's employees then different rules would apply (see "Disbursements").

There are HMRC rules about valid business expense with respect to you claiming from YourCo. Meals are a valid subsistence claim because of the associated business travel. There are also extra rules and allowances for non-UK travel. None of this is relevant to what you charge the client (unless you agree so).

The "what for" and "how much" you charge the client is entirely a contractual matter between you and them. HMRC do not care so long as there is a VAT component shown on the invoice.

For example, you could charge for only travel, travel + meals, or travel + meals + xxx. You could charge the actual cost, or cost +/- N%. You could even charge an agreed flat rate per night (much the preferred option, IMHO).

If you provide the client with receipts then again it is contractual matter between you and them, not a legal requirement. Only supply copies and be aware that they are only to be used to support your invoice and not for the client to reclaim VAT.

As to what is reasonable, well it's your call, so whatever you can get away with really. Practically speaking, either: charge the actual cost to you as shown on the receipts (inc VAT), and add your VAT on top, or: charge the net cost (ex VAT) and add your VAT on top. Both are valid imho, obviously the later option may be more valid from the client's POV .

Also, so that I am not missing anything, I will be claiming:
1. Taxi from home to Airport
2. Flight
3. Hotel
4. Daily travel expense from Hotel to client site
5. Lunch ?? not sure
6. Evening meal
7. Xxx
8. xxx

Don't forget to keep track of all travel, accommodation + subsistence expenses made by YourCo for your P11D.

[northernladuk]

There are articles in the links to the right that explain this and other useful stuff