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  • FIRST POST
    • funkey_monkey
    • By funkey_monkey 21st Aug 16, 4:57 PM
    • 363Posts
    • 25Thanks
    funkey_monkey
    Eating out and VAT receipts
    • #1
    • 21st Aug 16, 4:57 PM
    Eating out and VAT receipts 21st Aug 16 at 4:57 PM
    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.
Page 1
    • DomRavioli
    • By DomRavioli 21st Aug 16, 6:46 PM
    • 2,996 Posts
    • 5,129 Thanks
    DomRavioli
    • #2
    • 21st Aug 16, 6:46 PM
    • #2
    • 21st Aug 16, 6:46 PM
    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
    • By longforgotten 21st Aug 16, 8:58 PM
    • 1,060 Posts
    • 700 Thanks
    longforgotten
    • #3
    • 21st Aug 16, 8:58 PM
    • #3
    • 21st Aug 16, 8:58 PM
    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
    • By funkey_monkey 21st Aug 16, 9:36 PM
    • 363 Posts
    • 25 Thanks
    funkey_monkey
    • #4
    • 21st Aug 16, 9:36 PM
    • #4
    • 21st Aug 16, 9:36 PM
    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!
    Last edited by MSE ForumTeam3; 22-08-2016 at 10:07 AM. Reason: Quoting deleted post
    • DomRavioli
    • By DomRavioli 21st Aug 16, 11:33 PM
    • 2,996 Posts
    • 5,129 Thanks
    DomRavioli
    • #5
    • 21st Aug 16, 11:33 PM
    • #5
    • 21st Aug 16, 11:33 PM
    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.
    Last edited by MSE ForumTeam3; 22-08-2016 at 10:08 AM. Reason: Quoting edited post
    • paddyrg
    • By paddyrg 22nd Aug 16, 6:18 AM
    • 13,114 Posts
    • 11,189 Thanks
    paddyrg
    • #6
    • 22nd Aug 16, 6:18 AM
    • #6
    • 22nd Aug 16, 6:18 AM
    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
    • By martindow 22nd Aug 16, 9:13 AM
    • 8,111 Posts
    • 4,706 Thanks
    martindow
    • #7
    • 22nd Aug 16, 9:13 AM
    • #7
    • 22nd Aug 16, 9:13 AM

    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.
    Originally posted by funkey_monkey
    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
    • By Savvy_Sue 22nd Aug 16, 6:23 PM
    • 39,810 Posts
    • 37,048 Thanks
    Savvy_Sue
    • #8
    • 22nd Aug 16, 6:23 PM
    • #8
    • 22nd Aug 16, 6:23 PM
    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.
    Originally posted by DomRavioli
    Either that, or get an accountant (which I believe I have suggested in other threads ...)
    Still knitting!
    Completed: 1 adult cardigan, 3 baby jumpers, 3 shawls, 1 sweat band, 3 pairs baby bootees,
    1 Wise Man Knitivity figure + 1 sheep, 2 pairs socks, 2 hats, 2 balaclavas for seamen, 1 balaclava for myself, multiple poppies, 3 peony flowers, 4 butterflies ...
    Current projects: ready to decrease / decreasing on all parts of the mohair cardigan pattern! but moved onto wrist warmers for friends at Christmas ...
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