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Where Taxpayers and Advisers Meet

vat on travel & parking expenses

chorne1966
Posts:18
Joined:Tue Aug 18, 2015 1:29 pm
vat on travel & parking expenses

Postby chorne1966 » Sun Mar 05, 2017 1:29 pm

I run a business where we employ tutors on a consultancy basis. We pay their travel expenses at 45p a mile and also re-emburse them for their parking. The tutors tend to add vat to both the parking and travel expenses. As our business is not Vatable at the moment we are paying the vat as well is this correct?

Chris

les35
Posts:635
Joined:Wed Aug 06, 2008 3:09 pm

Re: vat on travel & parking expenses

Postby les35 » Mon Mar 06, 2017 9:38 am

It depends on what you have agreed with the tutors & whether they are registered for VAT. If they are registered for VAT, their expenses form part of the fee for their work, so VAT is chargeable; whether it is calculated on the net or gross is a contractual matter.

chorne1966
Posts:18
Joined:Tue Aug 18, 2015 1:29 pm

Re: vat on travel & parking expenses

Postby chorne1966 » Tue Mar 07, 2017 3:15 pm

Thank you regards Chris


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