I have a client who needs to keep records digitally now under MTD. He is not going to complete Excel (or any other software) himself so it’s down to me. The question is how much detail do I have to record?
He is a consultant working for a partnership. He spends most of his time marketing the partnership, both here and abroad (mainly USA), so his expenses are generally travel, entertaining and subsistence. He recharges all these to the partnership along with his consultancy fee and charges VAT on the whole amount. No input tax is claimed.
My issue is how much of the recharged expenses do I need to record individually, if at all, as there could be over a hundred each month, some for quite small amounts. Part of me thinks that as most of the expenditure is in the US and therefore not subject to VAT and he is not claiming any VAT on UK expenditure these amounts do not need to be recorded but the other part of me thinks that as this expenditure is forming part of his turnover it should be recorded. I have read VAT Notice 700/22 and am still as confused as ever.
Anyone have any insight into this as it is really doing my head in.