Reimbursing of expenses and flat rate scheme

OK, so a limited company contractor has an contract with a large banking group. As part of the contract, the contractor has to spend a couple of nights in a hotel and it has been agreed that the banking group will cover these. The contractor company is VAT registered under the flat rate scheme. The question is: How does the contractor invoice for this without taking a VAT hit? For example, if the hotel cost was £120 total then would he invoice for £100 plus VAT? This would then increase his FRS turnover by £120 and he would need to pay £17.40 to HMRC. As he is on the FRS he cannot reclaim the VAT. I giess really he should invoice for £120 plus VAT but I can't see the client agreeing to this. Any thoughts?

 

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Tough

squay |
squay's picture

Gee, thanks

alan.broome |

True though

mackthefork |

Squay! Would like to ask you

Cantona1 |

No you are wrong

Chris Smail |
Chris Smail's picture

NO

squay |
squay's picture

FRS

Cloudcounter |

Squay and Chris,

Cantona1 |

Are we all 100% sure on this?

The Limey |

Disbursements???

BKD |
BKD's picture

Yeah, will agree that there's

The Limey |

I think I found the answer to

Cantona1 |