When I search Knowledge Base for Disbursements it redirects to Rebilling Expenses - These are not the same.
If I get a landlord’s gas fire tested, I am not providing that service, it is delivered by the “gas man”. As I am acting as the landlord’s agent, I will pay the gas man £100 (on behalf of the landlord), and bill the client £120. (£20 is my fee for arranging it and providing access).
This needs to be recorded as a £20 invoice (ie part of my turnover) plus a £100 disbursement.
My turnover should only include the £20 sale but my client still needs an invoice for the £20 with a £100 disbursement
This must be common to many industries, lawyers for example often incur costs on behalf of a client which they need to rebill to the client without them being included in the firm’s turnover
The way you describe things in that article, putting the disbursement as a second line on the sales invoice, is a prime example of where it would be handy for QuickFile to support the “out of scope” vat flag at the line level rather than (as currently) only at the whole invoice level.
Following your instructions will still include the value of the disbursement in box 6 on my VAT return, even though it isn’t turnover that I’m charging VAT on. This is a big deal for businesses on flat rate VAT, and is arguably inaccurate reporting even for businesses on normal VAT accounting.
The workaround is to manually adjust box 6 to remove the disbursement, but it’d be easier if this could happen automatically with a line-level OOS flag.
