Customer is a pundit through a Limited company which is VAT registered. One TV production company has offered to re-imburse his travel expenses for trip to London. I invoice amount of service, add cost of travel and then VAT. Production company want travel receipts, which I havent got cos he has lost them!!! But Ive said its pointless as Ive added it to cost of the service and VAT now included...ie treated expenses as a re-charge NOT a disbursement. Besides I need them for expenses.
Am I correct or have I lost the plot?
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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
Its not unreasonable that the production company want to see receipts for the expenses that they are reimbursing - make sure that he hasn't ripped them off.
The wont be reclaiming VAT from them and a copy would probably do - doesn't make much odds if your client has lost them!
Hi Ian
Ive agreed to send them copies in future (assuming my client doesnt lose them again!)
They have tried to say they will not be paying the VAT on the re-charge so Ive put them straight on that. They also tried to say that they wouldnt pay the invoice at all until we produced the receipts so Ive just told them we will do it as a mileage claim (and will add on another 40 miles, as we under-claimed!!). Theyve promised to pay in full (believe it when i see though!)
__________________
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
