The screenshots are taken from clicking on the “Billable Expenses” amount/link on the summary screen, under Assets. Both screenshots are taken from the same area of the software, for the same time period, just different software versions. The 5 lines in both screenshots should be identical. Working from the bottom up, the 149.00 is the expense payment made, the next two lines (EQU011) are the items from the invoice raised to pay for the expense.
is taken from the 19.10.15 screenshot: 149.00 is the bottom entry. The 1.2 relates to 20% VAT, the 0.135 relates to the 13.5% flat rate figure. Finally, the 5.66 is the figure on the entry above the 149.00 figure - the 5.66 expense markup.
is taken from the 19.11.93 screenshot: 149.00 is again the bottom entry, 29.80 is the figure showing as the expenses markup (20%).
My accountant is perfectly fine with the procedure I use. These are expenses I have incurred that my client agreed to pay. They are not disbursements that I purchased on behalf of the client.
As I am VAT registered, I must ensure that VAT is charged on all my billable expenses, even if I did not incur VAT myself.
From the above screenshots, there are examples of:
Train tickets – public transport is zero rated. I charge my client what I paid but l add 20% VAT.
Mileage – as I negotiated a rate of 45p per mile with my client, I charge for the number of mileage times the rate and I add 20% VAT.
This is all in line with HMRC guidance and again, signed off by my accountant. However, at the moment I’m trying to highlight the difference between figures that should be identical, not justifying why the figures are there.
I’m fine with the new write off or bad debt procedure - I was merely highlighting the difference.