Improvement: Recharge Costs
News posted by Tommy Chung 3 years ago
Our developers have now released an improvement to the Recharge Cost feature. In cases where your business incurs incidental costs when supplying goods or services to customers, you may wish to recharge the cost by invoicing them. In accordance with HMRC's documentation, all recharge costs should include VAT whether you paid VAT or not: https://www.gov.uk/guidance/vat-costs-or-disbursements-passed-to-customers
As a result, our developers have amended the recharge cost feature so that the recharge invoice will default to the net price plus the 20% standard rate. However, not all costs will constitute to recharge costs and may actually be a disbursement. For disbursements, you will still have the option to exclude these from VAT calculations.