expense

[krssubbu]

That would be a surprise, but like you said...

"disbursement" what is this ? either way it is not a problem in view of hmrc, isn't it ? that's the main thing I need ?

[aoxomoxoa]

"disbursement" what is this ?

Let me put it this way.... Google is your friend, NLUK probably isn't

(Disbursements are expenses you incur on behalf of your client while providing the service, and for which you are reimbursed, e.g. a piece of software or hardware that you buy but which belongs to the client. You put it on your invoice but don't add VAT)

[TheCyclingProgrammer]

"disbursement" what is this ? either way it is not a problem in view of hmrc, isn't it ? that's the main thing I need ?

Read my previous posts. There's unlikely to be any IR35 issues but if you haven't been charging VAT on your expenses then yes HMRC will have a problem.

Google HMRC disbursement if you want to know what they are but they probably aren't relevant here.

[Andy Hallett]

Good luck with the expense + VAT thing, that's probably the hardest thing to get an agency to accept and usually requires going through the agent, agent's manager, agent's manager's manager and down the chain to their accounting assistant then to their accounting team leader, to their accounting manager and finally out to an accountant but only after stapling a copy of the HMRC manual to their forehead. Even then, you'll get persistent complaints from them about having to pay VAT on VAT.

A long-term, persistent PITA in my time as a contractor.

We built our system to allow a contractor to invoice with or without the additional VAT.

Must confess it did take a while for me to get my head around the whole VAT on VAT thing!

[Contreras]

"disbursement" what is this ? either way it is not a problem in view of hmrc, isn't it ? that's the main thing I need ?

Crikey, is this competition to see how complicated we can make it?

Your travel expenses are not a disbursement. (but paying for the client's ticket would be.)

There's no relevance to IR35 assuming you invoice business-to-business. Client reimbursing the expense direct to you would be a problem however.

Invoice for the amount (net or gross) depending on what is agreed with the agency. Charge VAT on top.

Separate invoice for expenses, or separate item on the same invoice, it's your call.

Keep receipts for your own records and as proof if the client needs it.

[TheCyclingProgrammer]

Crikey, is this competition to see how complicated we can make it?

Your travel expenses are not a disbursement. (but paying for the client's ticket would be.)

There's no relevance to IR35 assuming you invoice business-to-business. Client reimbursing the expense direct to you would be a problem however.

Invoice for the amount (net or gross) depending on what is agreed with the agency. Charge VAT on top.

Separate invoice for expenses, or separate item on the same invoice, it's your call.

Keep receipts for your own records and as proof if the client needs it.

/end thread

You would hope.

[Wanderer]

There's no relevance to IR35 assuming you invoice business-to-business. Client reimbursing the expense direct to you would be a problem however.

Why would the client reimbursing you directly be an IR35 problem? I don't recall any case where this was raised as a pointer and it's not mentioned in the Business Entity Tests...

[TheCyclingProgrammer]

Why would the client reimbursing you directly be an IR35 problem? I don't recall any case where this was raised as a pointer and it's not mentioned in the Business Entity Tests...

Being reimbursed personally, like any other employee, could be contrived to make it seem like you were part and parcel of the organisation or thought of as an employee. Maybe.

[DirtyDog]

/end thread

You would hope.

I bet it isn't.