Foreign travel (outside of EU) and expenses which are chargeable back to the client

[John Doe]

Hi all,

I will be travelling outside of the EU to do an assessment for my UK client. I will be paying for the BA flight and hotel with my own credit card and then charge it back to the client (as an expense invoice by my limited company). BTW I am on flat rate VAT.

Now my question:

Say for instance my flight and hotel costs would be 2000 pounds.

So would I charge the client 2000 pounds? Or do I add the VAT and charge my client the original cost 2000 plus VAT which would be 2400 pounds in total?

Thank you.

JD

[stek]

This has been asked before....

[Wanderer]

This has been asked before....

Yep.

Have a read of this document from HMRC which will hopefully explain it because it's a bit counter intuitive.

[Ticktock]

In short (i.e. not reading those links this late at night)... I always submit an invoice with line items for my time on one line, my exoenses on another (at the costs I paid) and then add VAt to the lot.

[davetza]

Hi all,

I will be travelling outside of the EU to do an assessment for my UK client. I will be paying for the BA flight and hotel with my own credit card and then charge it back to the client (as an expense invoice by my limited company). BTW I am on flat rate VAT.

Now my question:

Say for instance my flight and hotel costs would be 2000 pounds.

So would I charge the client 2000 pounds? Or do I add the VAT and charge my client the original cost 2000 plus VAT which would be 2400 pounds in total?

Thank you.

JD

The fact you are on the flat rate VAT scheme does not make any difference to how your charge your clients. All your invoices have to charge 20% VAT