Loading Profile...
Rebilled expenses on VAT return
why are out of pocket expenses which are 'rebilled' to the client included as purchases in box 7 on the VAT return?
I’m unsure
1
person has this question
I have this question, too!
Tell me when someone answers.
The more people who ask this question, the more it gets noticed.
The more people who ask this question, the more it gets noticed.
-
Inappropriate?Adding to my own Q. I wanted to add that I accept box 7 isn't the most important box (5 is), but I find it curious that FreeAgent includes both rebilled and non-rebilled expenses in 7 as purchase inputs, whereas the accountant advice I received was not to do so. Thanks. -
Inappropriate?I think your accountants may be referring to "disbursements" when they said exclude them from Box 7.
It is important to remember that rebilled expenses are not always the same as disbursements. in fact they rarely are in my experience.
HMRC have more details on their website
http://customs.hmrc.gov.uk/channelsPo...
I’m hopeful this answers the question.
1 Comment
Add a comment
This answers the question
-
Thanks Stuart, perhaps that's where the confusion lies. However, my expenses aren't disbursements. I presume FreeAgent is correct in adding them (rebilled or not) to box 7 - as they are inputs.
Using FA, I've invoiced rebill expenses to the client, I notice these are accounted on the P&L as SALES - is this OK or is there a better way? -
Inappropriate?@ Chris,
FreeAgent is correct in adding them to Box 7.
There isn't anything wrong with treating rebilled expenses as SALES. There are other ways to show them but if you're happy with it then I would leave it like that.
I’m trying not to complicate the issue!
-
Inappropriate?Chris, Stuart,
We're looking into breaking out the current single SALES category into subcategories based on the invoice item type. So you'd get Time Worked (merging together the time-based items), Products, Services, Expenses etc.
We're also going to move rebilled expenses into a new set of Cost of Sales categories, since they're incurred directly as a result of client work which is pretty much the definition of Cost of Sales. They're certainly not Admin Overheads...
Any further thoughts, Stuart. How would you do it?
I’m happy to make it more complicated for us if we can make it easier for users!
-
Inappropriate?@ Ed,
Give me a few hours to think about it.
I’m worried you're becoming an accountant!
-
1 Comment Add a comment
This answers the question
-
Thanks Stuart and Ed - splitting out sales by item type sounds useful
EMPLOYEE
