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Posted Tue, 31 Oct 2023 10:08:11 GMT by
Hi, I am billing a client in India for work we have carried out and as well as the fee for the work that was carried out, there is also an additional amount for expenses incurred such as travel etc. A 20% withholding tax will be deducted from their payment, which we will be able to claim back once we receive a WHT Certificate, but my query is whether the withholding tax should be applied on the total sum including the expenses or if it will solely be applied to the fee for the work itself? Thanks.
Posted Thu, 02 Nov 2023 11:58:46 GMT by HMRC Admin 25
Hi Tracy Wilson,
Deducting expenses from overseas income before calculating withholding tax can be a complex matter and depends on the tax laws and regulations of the specific country where the income is earned.
It is important to consult with a tax professional or accountant who is familiar with international taxation to ensure compliance with the tax laws. 
Thank you. 
Posted Thu, 02 Nov 2023 12:03:36 GMT by
Thank you for your response. That is helpful.

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