PGA Expenses

Brian_Howard

Hi
Just got a bit of a problem i cant get my head around regarding VAT!

Doing the accounts for a sole trader that works for the PGA....
To cut a long story short he'll pay for bills such as hotels etc. and on some occasions (not all) he'll claim the input VAT back.
So lets say a hotel for £100net...£15 VAT(claimed)...£115gross
And a taxi fare for £10net...(no VAT claimed)...£10 gross

So a total of
£110 NET (which goes into the expense accounts)
£15 INPUT VAT (which goes into the VAT account)
£125 GROSS

He'll then put an expenses claim into the PGA as follows:-

£125 NET
£18.75 OUTPUT VAT
£143.75 GROSS

Of that he'll pay the £18.75 output VAT over to the revenue.

In terms of VAT etc....where does he stand?


Help would be much appreciated