Originally posted by onthegreen
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Do I get vat refunded?
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Originally posted by jamesbrown View Post+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).
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 allComment
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Originally posted by jamesbrown View Post+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).
HMRC's view This has been argued here forever and I have yet to find an agent that actually understands itComment
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Originally posted by tractor View PostWhich 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 itComment
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Originally posted by tractor View PostWhich 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 itComment
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Originally posted by jamesbrown View PostYes. I assume the OP is talking about travel expenses, but who knows...Comment
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Originally posted by onthegreen View PostThe expense is an agency fee the consultant paid to rent a flat
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.Comment
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Originally posted by mudskipper View PostYes, 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.Comment
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Originally posted by onthegreen View PostIt 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 backComment
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Originally posted by onthegreen View PostIt 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
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?Comment
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