Commentary

V7.431 Recharging zero-rated expenses to a customer

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.431 Recharging zero-rated expenses to a customer

Part V7 Tax planning | Commentary

V7.431 Recharging zero-rated expenses to a customer

A common point of misunderstanding with clients and advisers relates to the recharging of zero-rated expenses to a client. These expenses do not form part of a separate supply to the customer but part of the main supply of services. Example 11 illustrates this principle with a simple situation.

Example 11

Larry is a tax lecturer and has agreed to carry out a lecture on tax for an insurance company for a fee of £1,000 plus VAT. Larry is based in London and the lecture is in Scotland so Larry will travel by first class

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