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  • Recharging of expenses

    I am currently doing bookkeeping for a client who provides a relocation service, they have a client that has employees relocating from abroad to the UK. They have asked my client to pay their employee's relocation expenses directly to the employee on their behalf and then recharge costs to the client. I can not see how this is correct as 1. My client can not show the expenses as a cost to her business, 2. She can not claim any VAT charged on the expenses as the VAT receipts are not in her company name and the expenses are not for her employee, 3. Her client should report the relocation expenses to HMRC and pay TAX and NIC. 4. Could this be classed as money laundering and tax avoidance. I look forward to hearing your thoughts. Thanks, Donna