VAT on Stuff

[seabro]

Hi,

Is this right? It might be but wanted to confirm.

I spend £100, get a receipt that doesn't have a VAT breakdown.
Agency bills the client
Agency sends the £100 to Parasol
Parasol now has the £100 from the client
Parasol gives me £83.33

I lose £16.67

Many thanks,
seabro

[LondonManc]

Ask Lisa on here or Parasol themselves for a more detailed breakdown.

[northernladuk]

This help? It's even written by parasol

But your best bet is to speak to Parasol as they are your employer.

[northernladuk]

Or this but it does mention a VAT element
http://forums.contractoruk.com/umbre...-expenses.html

[seabro]

This help? It's even written by parasol

Contractor guide to the VAT treatment of umbrella expenses incurred in the Eurozone

But your best bet is to speak to Parasol as they are your employer.

This relates to 'VAT treatment of umbrella expenses incurred in the Eurozone'

[seabro]

Or this but it does mention a VAT element
http://forums.contractoruk.com/umbre...-expenses.html

Thanks.

[northernladuk]

This relates to 'VAT treatment of umbrella expenses incurred in the Eurozone'

Isn't that what you are doing? I thought it went through the process of how VAT works with brollies which would help. Didn't read it in detail sorry.

[LisaContractorUmbrella]

Hi,

Is this right? It might be but wanted to confirm.

I spend £100, get a receipt that doesn't have a VAT breakdown.
Agency bills the client
Agency sends the £100 to Parasol
Parasol now has the £100 from the client
Parasol gives me £83.33

I lose £16.67

Many thanks,
seabro

The invoice raised to the client should have been working days x rate plus expenses chargeable to the client plus VAT - so, let's say 5 days x £200 = £1000 plus £100 expenses = £1100 plus VAT at 20% (£220) = £1320.00. This is then paid, by the agency, to your umbrella company - the VAT element of £220 is payable to HMRC and the £100 chargeable expense is payable to you.

VAT on a purchase is reclaimable against the VAT payable on sales so there should be no reason why you shouldn't have received the full value of the expense incurred provided that the agency has your original receipt.

[seabro]

The invoice raised to the client should have been working days x rate plus expenses chargeable to the client plus VAT - so, let's say 5 days x £200 = £1000 plus £100 expenses = £1100 plus VAT at 20% (£220) = £1320.00. This is then paid, by the agency, to your umbrella company - the VAT element of £220 is payable to HMRC and the £100 chargeable expense is payable to you.

VAT on a purchase is reclaimable against the VAT payable on sales so there should be no reason why you shouldn't have received the full value of the expense incurred provided that the agency has your original receipt.

Thanks for the reply Lisa, much appreciated.

[LisaContractorUmbrella]

Thanks for the reply Lisa, much appreciated.

You're welcome