I want to check my thoughts on this - I have a client (ex footballer) who made an appearance for free, but on the basis that the company he did the appearance for covered the cost of his travel. All the fooballers business is run through his own limited company which is VAT registered. So I now need to pass the fee on - my thoughts was this isnt a disbursement and therefore I need to add VAT on the invoice on top of the train costs (due to the train fare being for him, not for HIS client).
I have the receipt for the travel costs. It has been indicated that they will want the receipt from the travel - just wondering what everyone's thoughts are on this one. Ive argued this out with another of his clients in the past - they have agreed to 'cover' his travel, which to my mind is just like paying a bit extra for his services, so my view was the receipt remains the (footballers) company's as they paid the cost. Although one of the clients then refused to pay the 'extra' on the invoice that I had passed on, because they didnt have the receipts. (They did eventually pay without them, but now Im doubting myself and could do with confirmation that Im on the right track before I have the discussion with the next lot tomorrow).
(I have no idea if they are VAT registered or not - more of a problem when its a small group and they arent registered I guess!)
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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
My opinion is that this is definitely a recharge and not a disbursement. A disbursement is something that you purchase "on behalf of" the client. As the Company is merely reimbursing his travel cost and wouldn't have purchased this otherwise.
Here's an example of a recharge from HMRC website:-
an airline ticket that you buy to visit a client or to travel to a job, if you recharge the cost to your client you must charge VAT because the flight was for you, not for the client
So, recharge, not a disbursement (in my humble opinion)
(in my humble opinion) 
