Before I start a potential hare running....I received my clients books for 13/14 this morning. They are currently set up as sole trader, non VAT registered, Architect. Total income for the year is < £50k.
However, included within the detail are two jobs which they project managed. Cash advanced to my client and monies spent on project (on end clients behalf). I need to check the detail and confirm with client if the spends qualify as disbursements, assuming the spends do qualify as disbursements (and excluding clients PM fee) would it count towards VAT registration threshold?
Guidance/thoughts appreciated.
Thanks in advance
Replies (2)
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Disbursements
Hi there
I think more detail is needed. To be disbursements it must be clear the supplies paid for were genuinely supplied to the customer and paid for by your client with an exact reimbursement. If a true disbursement, there would be no supply and not relevant re: turnover threshold. What kinds of things were disbursed?
Hope this helps a bit.
Cheers