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bigduckontax, Accountant
Category: Tax
Satisfied Customers: 5331
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My EU based client doesn't want me to invoice expenses but

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Hi,My EU based client doesn't want me to invoice expenses but rather submit original expense receipts which are directly reimbursed via bank transfer. They claim this does not count as income on my part and shouldn't find its way on my self-assessment or tax returns. They describe it as, effectively, a debt repayment - is this correct/legal?Best,

Hello Graham, I am one of the experts on Just Answer and pleased to be able to help you with your question.

Reimbursement of expenses is outside the scope of UK taxation so your client's proposal is perfectly proper.

I do hope that I have been able to set your mind at rest on this matter.

Customer: replied 6 months ago.
Thanks for your reply. Just to confirm, these expenses wouldn't find themselves anywhere on my tax or VAT returns?

No Graham, you would have personally disbursed cash and been repaid. Your client could use the vouchers to recover any VAT involved.

Please be so kind as to rate me before you leave the Just Answer site.

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Customer: replied 6 months ago.
Thanks very much. Your input is much appreciated!Best,

Delighted to have been of assistance Graham.

Thank you for your support.