How does this work? (vat related)

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DannyMac

DannyMac

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I'm subbing for a VAT registered company at £130 + £20 per day diesel expenses. This of course if reflected in my invoices.

They say that they need my diesel receipts so they can claim the VAT back, but I need them to prove my expenses.

Are they able to claim the VAT back and if so do they need the receipts or just my invoice as proof?
 
DannyMac said:
I'm subbing for a VAT registered company at £130 + £20 per day diesel expenses. This of course if reflected in my invoices.

They say that they need my diesel receipts so they can claim the VAT back, but I need them to prove my expenses.

Are they able to claim the VAT back and if so do they need the receipts or just my invoice as proof?
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Tell them to fck off or get there fuel card ;)
 
If they're paying for the diesel how can you put it through your books? You can't both claim for it.
On the other hand if they're not paying for the diesel but just just paying an amount you're invoicing them for I doubt they're entitled to claim the VAT back.
 
DannyMac said:
I'm subbing for a VAT registered company at £130 + £20 per day diesel expenses. This of course if reflected in my invoices.

They say that they need my diesel receipts so they can claim the VAT back, but I need them to prove my expenses.

Are they able to claim the VAT back and if so do they need the receipts or just my invoice as proof?
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£20 per day diesel fu cks sake where you working dan john o groats :RpS_laugh:
 
essexandy said:
If they're paying for the diesel how can you put it through your books? You can't both claim for it.
On the other hand if they're not paying for the diesel but just just paying an amount you're invoicing them for I doubt they're entitled to claim the VAT back.
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But showing it as income and outgoings balances it out,
 
DannyMac said:
I'm subbing for a VAT registered company at £130 + £20 per day diesel expenses. This of course if reflected in my invoices.

They say that they need my diesel receipts so they can claim the VAT back, but I need them to prove my expenses.

Are they able to claim the VAT back and if so do they need the receipts or just my invoice as proof?
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I presume they are taxing you at source, so youll be taxed on your labour only ie 130.
are you vat registered ? are they paying for fuel then? if not and you are paying for the fuel they cant claim the vat back just the same as if you were supplying materials they cant claim the vat back as you've paid for them.
in short they cant do it
 
and besides says its 100 quid a week, what outfit needs around 16 quid of that, they sound a right tin pot outfit.
 
owls said:
I presume they are taxing you at source, so youll be taxed on your labour only ie 130.
are you vat registered ? are they paying for fuel then? if not and you are paying for the fuel they cant claim the vat back just the same as if you were supplying materials they cant claim the vat back as you've paid for them.
in short they cant do it
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But they do and they will. @BetterTAX
i often give over receipts and the builders claim the vat back.
 
Yes they are paying tax on £130 at source, I'm working 55 miles away in Thirsk so using every penny of 20 quid a day.

I have been fueling the van, so am I right in thinking they can't recover those VAT costs?
 
Andy's right you can't both offset with the same receipt. A transaction on a bank statement is not enough for HMRC, you need the original receipt for all expenses or they wont allow it when they inspect you.

If you have bought the fuel for £20 you keep the receipt as evidence and offset the £20 as a motoring expense. You then invoice the company you are working for £20. If you are not VAT registered you are not charging him VAT so he can not claim the VAT back.
 
if hes paying the vat another company cant claim it back, as hes already paid it. hes billing them at £20 not £20 plus vat, he has already stood the cost of it, it is fraud.
 
Wezly said:
Andy's right you can't both offset with the same receipt. A transaction on a bank statement is not enough for HMRC, you need the original receipt for all expenses or they wont allow it when they inspect you.

If you have bought the fuel for £20 you keep the receipt as evidence and offset the £20 as a motoring expense. You then invoice the company you are working for £20. If you are not VAT registered you are not charging him VAT so he can not claim the VAT back.
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Perfectly explained, thanks for that. I understand now. :RpS_thumbup:
 
just the same as if your not vat registered, and your invoicing a builder net, they cant recuperate the vat back on materials you've bought, you've paid the vat and not passed it on because your not vat registered.
 
Great advice here!

Everyone is right. If they are not reimbursing you for fuel, they cannot claim the VAT as it was your expense. If you are claiming fuel or mileage as your expense against your tax, it is not THEIR expense.

However, if they are paying the cost of your travel, then you should hand over the receipts for them to claim the VAT and you should NOT be claiming travel on your tax return.

Again, however, if the £20 allowance (say they are repaying you) does not cover your total mileage costs, you can offset the difference.

We usually advise to claim for mileage rather than fuel/ van costs. Current allowance is 45p a mile for first 10000 miles, then 25p a mile.

HMRC prefer receipts, especially if you are claiming fuel costs, but bank statements can show a paper trail of costs but a diary showing where you were and when is very often used. One of our services is to assist in compiling a mileage log but its far better to keep the record on a daily or even weekly basis. In many cases a site supervisor or contractor can give an account of jobs you were working on.

So, if you are in a situation where they are contributing to fuel costs and you want to claim what they don't give you, I'd personally keep my own receipts and offer them photo copies. :-)

P.S. Just re-read your OP. If you are giving them invoices and you are not VAT registered then they have no VAT claim. And actually, be careful about the fuel you are claiming for... they are paying you £20 if you invoice it as a separate item - so you are in effect being reimbursed travel - or a portion of it. Have you weighed up whether you'd be better off invoicing a single amount (£150 was it), and tell them you will sort out your own travel expense?

HTH... If you need any advice, give Ricky a call on 01280 821020.
 
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Thanks, would I be better off just billing a straight 150 per day as a combined thing rather than what i am doing. 130 labour then 20 expenses under a different heading? Afterall, the 20 just covers diesel and no wear and tear of the vehicle.

Or should I be invoicing for 130 labour only and just giving them the receipts. Bearing in mind that they have put the fuel money into my account.

I'm confused again
 
DannyMac said:
Thanks, would I be better off just billing a straight 150 per day as a combined thing rather than what i am doing. 130 labour then 20 expenses under a different heading? Afterall, the 20 just covers diesel and no wear and tear of the vehicle.

Or should I be invoicing for 130 labour only and just giving them the receipts. Bearing in mind that they have put the fuel money into my account.

I'm confused again
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Look at it simply as a profit/loss account.
Any money you have paid to you whether it's for materials, fuel, labour is all in the profit account.
Any money you spend on work and going about your work (that you have a receipt for) is listed under your loss account.

If you give this guy your receipts you can not put the the fuel under your loss account, but the money he has reinbursed you into your bank means you have to show this in your profit account. You will then be paying tax on that money!

I would bill him £150 , breaking it down however you wish, it makes no differnce to either of you.

Always be aware that when, not if but when you have an inspection you need to show your accounts and all receipts as evidence. They will scrutinise everything you have done, if they find mistakes or discrepancies they will dig deeper to catch you out.
 
You are obviously not taking this serious Dan, moaning about tax when still living in Bongo Bongo land a tax haven.
 
@Wezly is quite right really. Unless they have specifically asked you to invoice in that way because they are specifically paying you fuel, you can just make it one amount. Whether you then spend £20 or £30 on mileage, you can claim it back against your tax.

And its also true, HMRC will randomly pick names out to have a closer look at, so all of you, keep receipts!
@DannyMac, if you want to call in, we don't charge for advice and it may put your mind at rest :-)
 
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hmrc picked a roofer mate of mine out for random investigation, and 3 years later, they still bother him.
 
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