Vat Invoice

George

Can some kind person(s) share their knowledge, please?

An employee of a Vat Registered Company incurs these business related costs on a piece of work for the company. The employee has Vat receipts for the expenses, although the fuel used is less than the amount of fuel purchased. The company's client is also a Vat Registered company which has agreed to cover the expenses cost.

Hotel £100 + 15% Vat

Mileage (using own privately owned car) £120.00 (300 x £0.40)

What is the employee's claim to his company, and how will the supplier company's invoice appear to the customer company?

Thank you very much!

slackda

If they are legit expenses, i would have thought that your will claim Gross Expenses i.e on the Hotel £115.00 and the Fuel Reimbursment would be down to company policy, however to avoid BIK the company will follow HMRC guild lines and use the 40ppm rate. if its cost more that £120 quid to drive 300 miles i would be worried......

Some companies will let you claim back the full cost of the fuel however this can be classified as BIK (benefit in kind)

The basis of the 40ppm is to cover the cost of fuel (approcx 10-18p) the rest covers insurance cost and wear and tear on the vehicle.......

with reagrds to the Companies invoice, i would suspect that you would invoice out at the same rates i.e net cost of £100 as your adding the vAT on too. and if i rember correctly your entitled to charge out at 40ppm Net and add vat to that exepense. it does depend on what the company/client have agreed in relation to costs.

hope that makes sense