VAT - A Practical Introduction to Disbursements & Expenses

Introduction

The bottom line for VAT disbursement treatment, is that VAT (if charged) cannot be claimed as input tax, and the cost is passed on to the client exactly as it is.

This contrasts with an expense of the business, where any VAT charged can be recovered as input tax subject to what are called ‘the normal rules’.

So why is there generally such confusion?

Ideal for those new to VAT, or with little VAT experience, this seminar aims to dispel the confusion, and will explain the difference between the two, and the correct VAT treatment for both.

Using practical examples and case studies, VAT expert Gwen Ryder will explain the concepts of VAT as simply as possible and will answer all your questions so that you will leave the session feeling confident in your ability to deal with this aspect of VAT.

What You Will Learn

This course will cover the following:

• A summary of the basic concepts of VAT
• Understanding the terms ‘supply’ and ‘consideration’
• Disbursements
• Disbursements versus expenses on which VAT can be reclaimed - what is the difference?
• How to determine VAT disbursement treatment, and items agreed with HMRC as being disbursements
• Counsel fees - special concession
• Correct VAT reporting
• Expenses
• The rules and the thought process for correct input tax claims
• Evidence needed to claim VAT
• When to claim VAT
• ‘Blocked’ input tax which can never be claimed - e.g., business entertainment
• Staff expenses and costs of employment
• Error correction and reporting