VAT on travel expenses

[stinkyspanner]

I'm doing a job for a company at the moment who have agreed to pay me a day rate plus £100 per week for travel expenses. I am invoicing a 'middle man' as it's 'his' customer really and then he adds a bit a invoices the company.
They don't want fuel receipts or whatever, it's just a flat rate for the expenses element. I believe I should add VAT on top, but the chap that I'm invoicing reckons not.. Who's right?

[Simpo Two]

If you're VAT registered then add VAT to everything. If he's VAT registered he reclaims it later, so he doesn't lose.

I'm a bit surprised he's asking for ex-VAT - unless he's not registered...

[stinkyspanner]

We're all vat registered so I'm not sure what he's on about..

[Doofus]

He's probably confused because lots of travel costs (tickets etc) are zero rated for VAT. You're actually providing a service, so it is subject to VAT.

If you were to recharge him for specific expenses, with receipts, then that would be different.

[stinkyspanner]

anonymous said:

[redacted]

Nah, it's legit