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Posted Sat, 30 Jul 2022 07:52:44 GMT by asafm7
Hi, I'm sometimes being reimbursed for project-related expenses by my clients. That is, I'm paying for something and then getting the amount back from my client. What would be the best way of recording these transactions? Also, can I claim these reimbursed expenses for tax relief? If I do not claim these reimbursed expenses for tax relief, and *do* record the reimbursement from my client as an income - I will pay more tax than I should I believe. Also, do I need to invoice my client for these expenses? I hope my question is clear enough. I will be happy to make it clearer if it isn't. Thanks, 
Posted Mon, 01 Aug 2022 13:26:52 GMT by HMRC Admin 17

Please note that re-imbursed expenses should be taken into account  when calculating your total self-employed income.

If however some or all of the reimbursed expenses are 'allowable', you can of course include them as deductible expenses :.   

HS222 How to calculate your taxable profits (2020)   .

Thank you.
Posted Mon, 01 Aug 2022 19:48:14 GMT by asafm7
Thank you
Posted Mon, 12 Dec 2022 14:28:08 GMT by Katherine Ranner
This is also my question. So say I am charging £200 for my time and £50 for my train fare, which the company have agreed to pay. I include £250 on my total income amount on my tax return. Can I also include the £50 on the expenses total amount even though I am not out of pocket for that amount as it was reimbursed to me on my invoice? Thanks
Posted Wed, 14 Dec 2022 12:50:09 GMT by HMRC Admin 2

You would need to declare the whole amount paid to you as turnover and claim expenses for travel, subject to the rules on travel expenses.

Expenses if you're self-employed

Thank you.
Posted Thu, 27 Jul 2023 20:37:56 GMT by Lm100
That's also my question - are reimbursed travel expenses meant to be included in the turnover (total income before expenses) even when earnings aren't high enough to be taxable, and therefore can't claim expenses? So I earn well below the Personal Allowance and the Small Profits Threshold, so I can't claim expenses. Sometimes my clients reimburse the cost of travel to get to them (usually bus or taxi), so the travel expense is cancelled out - there's no profit from the reimbursement. Should those reimbursements be added to the total income? (Using cash basis)
Posted Thu, 03 Aug 2023 16:46:15 GMT by HMRC Admin 10
If a client pays your expenses, this is profit to be added to your gross profit.  
You would also claim expenses for the travel.
Posted Mon, 25 Sep 2023 09:50:02 GMT by SH.123 Hussain
Hi I offer legal services as an agent for law firms and once this service has concluded I invoice the firm for the cost of legal services, mileage and parking fees. I am registered as self employed so when completing my tax returns should I include my income as the total of what I have received including my charges for legal services, mileage and parking or should mileage and parking be excluded? If parking and mileage should be included as my income, should I then also claim mileage and parking as an expense? My second question is that should I only be declaring my income for invoices I have been paid for within the financial year or should it also be for invoices I have sent in the financial year but have been paid in the following financial year. Thanks

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