Self-employed: claiming expenses back from company, receipts?

MushyPeas

Hiya

I've had a surf around the web and this site and can't find the answer to this question:

I am self-employed and have carried out some work for a company and they will pay travelling expenses.

They have asked for the original receipts. Should I send them in, or do I need to keep them to evidence that the company is not paying me a fee (get taxed on this) compared to reimbursing expenses (not taxed)? Or should I not worry and just send them in?

Thanks in advance.

dejongj

Copy them and send them in....

MushyPeas

Cheers. It's just that I had an accountant once who said I should NEVER send in the original receipts to a company. That's all. But he turned out to be a useless accountant so maybe he was also wrong about that.

dejongj

That was the technical explanation

Also there are two other practises, I think that by providing the original receipts they will make what's called a disbursement. That way the expenses should not be added to your VAT Invoice as a VATable item which they are. And the payment can proceed without all the tax implications. So a bit like, with my simple mind, you provide them the original receipts, they give you money out of their petty cash! Now if you don't provide the original receipts you'll have to invoice them (probably still with a copy of the receipts attached as proof) but then the whole thing attracts VAT.....

I probably haven't done the rules justice but that is my understanding of it....Much more complicated behind the scenes than it seems at first....

MushyPeas

Thanks guys I will see what happens. One company I work for wants the receipts, the other wants me to invoice them!

I don't earn enough to be VAT registered, oh heady days!