I have to invoice the BBC for service supplied for a client. They normally send a car but this time my client drove and they said he can claim his expenses back from them, so Ive worked out an amount to add to the invoice at 45p per mile. Do I add VAT to the whole amount or is the expenses claim non vatable (TO or T9)??
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
You'll charge VAT on the whole amount (as his travel expenses were incidental to the services that were performed and so follow the same VAT treatment). If the BBC haven't set any guidelines about expense reimbursement, there's nothing to stop your client from invoicing the BBC for more than 45p/mile.
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Pearce & Co - Chartered Accountant and Chartered Tax Adviser
