VAT on top of train expense form

EMPG
EMPG Registered Posts: 20 Dedicated contributor ? ? ?
Hi there,

Why would you add vat on the top of a train ticket amount on the cash expense form?

i.e. Train ticket paid by staff: £67.80, VAT added on the expense form £13.56. Expense paid back to the staff memeber £81.36.

Thanks

Comments

  • PGM
    PGM Registered Posts: 1,954
    There's no vat for public transport. So you wouldn't?
  • EMPG
    EMPG Registered Posts: 20 Dedicated contributor ? ? ?
    That is the logic answer - Thank you; I will have to ask the Financial controller who is who prepared the form.

    Thanks
  • Monsoon
    Monsoon FMAAT, AAT Licensed Accountant Posts: 4,071 ? ? ?
    Not on an expense claim, no.

    If you were billing that on to the client, then you would add VAT (it's not a disbursement) but you reimburse the employee what they paid for it.
  • PGM
    PGM Registered Posts: 1,954
    Monsoon wrote: »
    Not on an expense claim, no.

    If you were billing that on to the client, then you would add VAT (it's not a disbursement) but you reimburse the employee what they paid for it.

    So you always add vat to travel when billing it on as a service?

    I've seen it billed to us as a separate item without vat. So never been sure..
  • Monsoon
    Monsoon FMAAT, AAT Licensed Accountant Posts: 4,071 ? ? ?
    This comes under the disbursements rule.

    If you incur an expense and bill it on to a client, and you're VAT registered, then:

    Your fees : VATable.

    A cost you incur on behalf of them (that they 'enjoyed') e.g. when I pay the £14 Companies House filing fee for an Annual Return on behalf of a client - this is a disbursement and you don't have to add VAT.

    A cost you incur that you enjoyed, not them, e.g. you sat on a train for the meeting, you slept in the hotel, these are not disbursements and if I remember it correctly you have to add VAT.
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