Sorry if this has been covered elsewhere - it seems like a really simple question but I've had different feedback from colleagues so wanted to ask the experts!
I'm a freelance TV producer and on shoots I sometimes end up having to buy the crew lunch or pay for train fares and taxis/hotels.
I claim this back from the production company by invoice, for which I have to provide all my receipts.
I assume that I have to declare these invoice in my profits - but it seems a bit unfair in that I'm being taxed as though it's income but for me it's a business expense
Or should I put this in both my profit and my loss columns, effectively writing it off?
supply the production company with copies of the receipts, they just want to make sure the payments are legitimate and will claim the expenses directly from your invoice. You keep the originals and post as expenses.
You should put it in both, make sure you keep the receipts and send copies of them to the production company. Also if you are VAT registered you need to charge VAT on them when you invoice the production company irrespective of whether or not VAT was charged or chargeable on the original receipts.
Thanks very much for getting back to me so quickly - unfortunately I'm not sure I've still got the originals! But good to know I don't have to pay income tax on it in principle.
is it right to charge VAT on top of the VAT included expense?
I thought it was wrong to tax a tax?
P
That's not what she meant (if I am able to mind read). She meant if YOU are VAT registered and one of the expenses was from a non VAT registered company, you would still have to add VAT onto YOUR invoice. If you're not VAT registered then it won't apply.
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