I presently carry-out DBS (CRB) checks on my candidates. I provide Recruitment Services. I am a Ltd, VAT registered company.
To carry-out this check, I am invoiced the following:
DBS Check - £44 (VAT Exempt)
DBS Admin Fee - £10 + £2(VAT)
Total Fee Charger = £56
I recharge this (£56) in full to the candidate.
My questions are as follows:
1) Do I have to charge VAT to the candidate (The DBS Check is mandatory for candidates)?
2) Can I claim back the VAT (£2) I have been charged
3) If I am invoiced £56 and recharge this to the candidate, how do I show this complete 2-way transaction on Solar Accounts so my Quartely VAT return are correct?
Thanks.
Hi Nick,
I don't think you can treat the DBS Check as a disbursement for VAT purposes because you receive the benefit of the check, not your customer. (However I'm not an export on this - please check this with HMRC).
In that case:
1) Yes, you will need to charge VAT for everything you charge the candidate
2) Yes, you can reclaim the £2 VAT
3) When you pay for DBS Check, create a Money Paid Out transaction with two lines in the Allocate To Account table: One for £44 with 0% VAT and the other for £12 with 20% VAT. To recover your costs when you bill your customer, create an invoice for £54 (excl. VAT) with the Account set to 'Sales Income' and a the VAT rate 20%. This will mean your customer pays £64.80, not £56.
Regards
