Small Business Accountants

What are Rechargeable Expense: expensing a client?

Rechargeable expenses are costs a UK business incurs while carrying out work for a client and then bills back to the client. Typical examples include travel, accommodation, and courier charges. VAT-registered businesses usually charge VAT on the recharge unless the expense qualifies as a disbursement under HMRC's eight-test rule, in which case it is passed through at its original value with no VAT added by the reselling business.

What are Rechargeable Expense: expensing a client? - GoForma Small Business | UK Accountants & Tax Advisors
This article is part of our Small Business Accountants guide — your essential resource for running a small business.

<p>Rechargeable expenses are expenses that are incurred during the performance of your work that you can recharge or recover from your client or agency.</p>

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