VAT disbursements on client invitation postage
Posted: Wed Apr 19, 2017 6:50 pm
I have a wedding planning business where I charge my client a set fee for my services.
Previously clients would contract and pay suppliers directly but as a planning service it is easier for us to deal with all payments etc.
With regards to posting their invitations, we would have these sent out. We do not make any money on top of the postage charges and we are not posting the items to the client so I would presume this can be treated as a disbursement. My accountant believes we would need to charge VAT on this and has refered me to this website: https://www.gov.uk/guidance/vat-costs-o ... -customers and section 2.2 of this website: https://www.gov.uk/government/publicati ... -marketing.
These examples all refer to if I have something to send to my client, however I would be sending invitations out to my clients guests on behalf of my client so I don't understand why it would be treated any differently to any other disbursement.
With regards to other disbursements, it would be easiest for us to contract with the supplier ourselves and pass on the costs to the client for the services. If I was passing on costs as a disbursement would the client have to contract directly with the supplier and the invoices go directly to the client? I want to make it as easy for a client as possible without them having to pay any additional amounts if possible. If anyone has any other ways that this can be done please do let me know.
Thanks so much,
Ajay
Previously clients would contract and pay suppliers directly but as a planning service it is easier for us to deal with all payments etc.
With regards to posting their invitations, we would have these sent out. We do not make any money on top of the postage charges and we are not posting the items to the client so I would presume this can be treated as a disbursement. My accountant believes we would need to charge VAT on this and has refered me to this website: https://www.gov.uk/guidance/vat-costs-o ... -customers and section 2.2 of this website: https://www.gov.uk/government/publicati ... -marketing.
These examples all refer to if I have something to send to my client, however I would be sending invitations out to my clients guests on behalf of my client so I don't understand why it would be treated any differently to any other disbursement.
With regards to other disbursements, it would be easiest for us to contract with the supplier ourselves and pass on the costs to the client for the services. If I was passing on costs as a disbursement would the client have to contract directly with the supplier and the invoices go directly to the client? I want to make it as easy for a client as possible without them having to pay any additional amounts if possible. If anyone has any other ways that this can be done please do let me know.
Thanks so much,
Ajay