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Thank you. We're not paying for any of it directly, they are all expenses which the self employed person is claiming back from us. The self employed person is not VAT registered though so for example, a trainer has gone to do a job for us in Devon (we are based in London)... she then invoices us £200 for her work, £90 for her flight and £50 for the car she had to hire in Devon. So the invoice she sends us totals £340... what does she need to send us with the invoice...? Again she is not vat registered.
Lovely, thank you so just to summarise... so our self employed chaps should be sending us an invoice with their expenses listed but without physical receipts as there's nothing we need the receipts for (as the expenses do not then become ours to reclaim the vat on), and our employees always do need to give us receipts with their expenses because they are our expenses and we can claim back the vat....?
Thank you... im so sorry, one last question just to follow it to the end of our process...
Once I enter the self employed persons invoice on the system (putting the vat classification as 'not registered' for the work done portion of the total, and 'non deductable'(?) for the expenses portion)... if we then want to recharge our client for the car hire expense, I would need to manually extract the expense net vat from the self employed person's invoice to charge on (and then apply vat as we are vat registered)...?
(example as before - an expense from a non vat registered self employee of car hire of £50 including vat - we cannot claim the vat so it goes on our system as £50 VAT non deductable, but then if I want to charge our client I would charge £41.67 plus vat...?)
Thank you very much once again!
I was going to be entering the car hire expense as 'vat non deductable' as we can't claim the vat on it...? Maybe I've misunderstood that classification. So the full amount of £50 from her invoice is entered and then classed as 'vat non deductable' in the vat column (as it's not exempt, zero rated or standard...or technically is standard, but not reclaimable and putting standard would mean that it would show up for us to reclaim)
I apologise if im not understanding you or not explaining correctly, im just data entry really but trying to make sure that the system I've taken over is correct as the business grows... I appreciate your patience!
Im fairly sure they are correct to be self employed... they work for other companies also doing the same thing and arrange their own travel and materials... I believe someone senior to me here has discussed it previously with HMRC but I will bring it to their attention.
Perfect, that's what I was unsure on but that's helped me clarify what it is I was asking... that it does have VAT in it but the VAT is irrelevant to us. 'Not registered' makes sense... I will look into that, thanks for helping me clarify what I was asking!
Thank you, ***** ***** a look into the link you have sent and will mention it to the appropriate individuals...
Thanks again... please feel free to send a blank reply and I promise I will rate without further questions! ; )