Eating out and VAT receipts

funkey_monkey

Hi,

Hopefully last thread for a while!

I'm compiling an expenses list for a customer. I've got receipts for which I am unsure how to bill the client.

1. Restaurant receipt for evening meal consisting of hot meal and an alcoholic drink totalling £19.50. Receipt does not dreak down the VAT (which I understand to be okay for restaurants) nor does it have a VAT number on the receipt. Including service charge/tip I paid £22.00.

Questions:
a). Can I charge for the service charge even though it is not on the receipt? If so, is the service charge subject to VAT, or is it VAT exempt?
b). How do I break this down? I have it currently marked down as £15.60 (Nett), £3.90 (VAT), and finally £19.50 (Gross). Is this correct?


2. Second evening meal was from a shop. It has a VAT number on the receipt, but no breakdown of the VAT. Only one item on the receipt could be warmed (pot noodle, fruit & crisps).
How does VAT breakdown here?

Thanks.

DomRavioli

a) i doubt it - gratuities are a choice, not part of a billable service. Next time ask a client before you get in this situation.
b) see https://www.gov.uk/guidance/rates-of-vat-on-different-goods-and-services#food-and-drink-animals-animal-feed-plants-and-seeds for VAT rates.

2. See point B.

Literally, have you people never heard of google?! It is the first result when you put "VAT on restaurant food" in there, and the official government website.

longforgotten

http://rsaccountancy.co.uk/2015/06/06/charging-your-client-or-customer-expenses-how-to-do-it-correctly/


... you need to add output tax on top of the expense even if the expense when purchased had no vat i.e train travel has no vat so if you pay £10 for a train ticket you cannot claim any vat back but you must charge your customer £10 + vat on the sales invoice you raise

funkey_monkey

Probably shouldn't, but after being made redundant I've had to go self employed and try to make things work.
Every question asked on this forum (and probably the vast majority of internet forums) could be resolved from Google, but sometimes when you are pushed for time or are having problems understanding the text, it is easier to go to a forum.

Incidentally, if you type in "VAT on restuarant food" as you suggest, the first link that comes up using Google is:
http://www.accountsandlegal.co.uk/tax-advice/vat-in-the-food-industry

The first paragraph of this link states:

VAT can be tricky to get your head around at the best of times but when it comes to the world of catering it’s a whole new kettle of fish.

So maybe my question was not as ridiculous as you are trying to make it out to be.

Great to see people starting up their business getting help and encouragement!

DomRavioli

To be honest, the only people you should consult on this is HMRC, not an open internet forum.

That's the best piece of advice anyone can give you - go to the official source, not the internet.

paddyrg

Was it a service charge or tip? I would imagine the service (if charged by the restaurant) would be charged with the prevailing VAT, and as it's an unavoidable cost of eating the meal, reclaiming the vat on it should be fine. However, you say is not a VAT receipt and had no VAT number, so it's moot.

martindow

funkey_monkey wrote: »

1. Restaurant receipt for evening meal consisting of hot meal and an alcoholic drink totalling £19.50. Receipt does not dreak down the VAT (which I understand to be okay for restaurants) nor does it have a VAT number on the receipt. Including service charge/tip I paid £22.00.

Questions:
a). Can I charge for the service charge even though it is not on the receipt? If so, is the service charge subject to VAT, or is it VAT exempt?
b). How do I break this down? I have it currently marked down as £15.60 (Nett), £3.90 (VAT), and finally £19.50 (Gross). Is this correct?


2. Second evening meal was from a shop. It has a VAT number on the receipt, but no breakdown of the VAT. Only one item on the receipt could be warmed (pot noodle, fruit & crisps).
How does VAT breakdown here?

Thanks.

I wouldn't think you can claim for alcoholic drinks or a tip and a receipt without a VAT number is going to be problematic. Maybe they are not VAT registered and there is no VAT element at all?

Savvy_Sue

DomRavioli wrote: »

To be honest, the only people you should consult on this is HMRC, not an open internet forum.

That's the best piece of advice anyone can give you - go to the official source, not the internet.

Either that, or get an accountant (which I believe I have suggested in other threads ...)