VAT on Expenses - Help!!

Marcus007
Marcus007 Registered Posts: 5 Regular contributor ⭐ ? ⭐
I have only just become a member in practice and therfore to most of you this will be a stupid question....

I have my first client who is self employed and not VAT registered.

You can only claim the net amount for each expense and not the full amount including vat...is this correct????

He seems under the impression that he can still claim the full amount for the expenses for things like phone, and petrol etc.

Can anyone just set me straight.....1st client nerves :o)

Thanks in advance

Comments

  • jilt
    jilt Registered Posts: 2,903
    Yes he claims the full amount, he can't claim the VAT from HMRC as he's not VAT registered so the cost to him as the gross amount.

    What service are you actually performing for this client?
  • Marcus007
    Marcus007 Registered Posts: 5 Regular contributor ⭐ ? ⭐
    Thanks for the help. I am simply doing his bookkeeping and putting it into a profilt and loss account.
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