This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.


Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet


Posts: 2947
Joined: Wed Aug 06, 2008 4:01 pm

Re: Allowance/expenses

Postby robbob » Tue Jun 11, 2019 8:32 am

So when I invoice I need to add VAT to the allowance element as well as the fee.

Note there are a few specific circumstances where reimbursed items may be excluded - however this can't ever cover anything where you have consumed the service being reimbursed (eg your train travel or your accommodation). an example of when something that may be a non vatable disbursement would be if you collected some materials on behalf of a client that your client had contracted to pay for and you handed across the cash/cheque etc simply as a convenience and were then refunded.
Chapter and verse available here.

Return to “Income Tax”