Do I get vat refunded?

[stek]

I am the employee of my ltd company who is the service provider to the client company.

I (employee) pay an expense out of my pocket. 150 + 30 vat = 180

My ltd company raises a bill to the client of 150 + 30 vat =180 and get it paid

The question is, what and how comes down from my ltd co bank account to my personal bank account.

Hope it is clearer now.

Thanks

Needs more commas...

[onthegreen]

+1, the question is a mess on several levels. OP, by "employer", you presumably mean client, and by "employee", you presumably mean office holder? Anyway, you first need to understand the distinction between billing your client and claiming expenses from YourCo, which are two separate activities. In terms of VAT, I think your confusion - not uncommon - relates to what your invoice represents. You are billing for services, which attract VAT. You are not claiming expenses as an "employee" of your client (I would hope not, for a host of other reasons). Thus, you charge VAT on the invoice total for services provided, which may include expenses that originally incurred VAT (assuming your contract allows you to re-bill these).

Sorry again for the confusion.

Employer means client and employee means office holder. All correct.

My ltd co has billed expenses to my client and now the consultant (me) is claiming expenses to the ltd co. I understand they are two separate activities but would loke to understand the whole process,i.e, since the consultant pay things out of his pocket (hotel bill for instance) to the consultant getting the money back again.

Thanks to all

[tractor]

...

+1, the question is a mess on several levels. OP, by "employer", you presumably mean client, and by "employee", you presumably mean office holder? Anyway, you first need to understand the distinction between billing your client and claiming expenses from YourCo, which are two separate activities. In terms of VAT, I think your confusion - not uncommon - relates to what your invoice represents. You are billing for services, which attract VAT. You are not claiming expenses as an "employee" of your client (I would hope not, for a host of other reasons). Thus, you charge VAT on the invoice total for services provided, which may include expenses that originally incurred VAT (assuming your contract allows you to re-bill these).

Which is another can of worms and potentially, you should have charged the client £180 + VAT (£36) = £216

HMRC's view This has been argued here forever and I have yet to find an agent that actually understands it

[jamesbrown]

Which is another can of worms and potentially, you should have charged the client £180 + VAT (£36) = £216

HMRC's view This has been argued here forever and I have yet to find an agent that actually understands it

Yes. I assume the OP is talking about travel expenses, but who knows...

[onthegreen]

Which is another can of worms and potentially, you should have charged the client £180 + VAT (£36) = £216

HMRC's view This has been argued here forever and I have yet to find an agent that actually understands it

Thats what i think as well. The 216 goes to my company account who need to pay HMRC the VAT (£36) and then £180 to he employee who recovers exactly the amount he paid.

[onthegreen]

Yes. I assume the OP is talking about travel expenses, but who knows...

The expense is an agency fee the consultant paid to rent a flat

[mudskipper]

The expense is an agency fee the consultant paid to rent a flat

Yes, yourCo either charges VAT on the expense incurred inc VAT, or takes the hit. The 'profit' on the flat rate scheme is intended to cover that.

One possibility for the future to avoid double VAT is for the client to pay the expense direct if they and yourCo are happy to do this.

[onthegreen]

Yes, yourCo either charges VAT on the expense incurred inc VAT, or takes the hit. The 'profit' on the flat rate scheme is intended to cover that.

One possibility for the future to avoid double VAT is for the client to pay the expense direct if they and yourCo are happy to do this.

It is funny because all the examples i read say that you should include your expense in the invoice net of VAT, in my example, £150, and then charge the VAT you charge. That is what my accountant says also but doing it this way i dont quite understand how the employee gets his £180 back

[tractor]

...

It is funny because all the examples i read say that you should include your expense in the invoice net of VAT, in my example, £150, and then charge the VAT you charge. That is what my accountant says also but doing it this way i dont quite understand how the employee gets his £180 back

Because the two transactions are distinctly different - not connected at all. One is an expense to your business and the other is a VAT input. You are trying to tie them together to reconcile them, that is not the way it works.

[mudskipper]

It is funny because all the examples i read say that you should include your expense in the invoice net of VAT, in my example, £150, and then charge the VAT you charge. That is what my accountant says also but doing it this way i dont quite understand how the employee gets his £180 back

Did you read tractor's link?

Particularly the section headed 'What isn't a disbursement for VAT purposes'

YourCo charges VAT because you've 'added value' to the expense.

What examples have you read? Links?