VAT on travela nd expenses?? Help

Gardenman35

Any ideas re the following?
I was let go from a gov agency June 2009 however they gave me a contract for services and I registered as a sole trader to supply services similar to those I provided whilst in employment.
I invoice the company each month for a monthly salary e.g. €2500 and they agreed to reimburse me for out of pocket expenses and travel at Travel and Subsistence rates comparable to those I recieved in the gov agency i.e. 0.41 cents per KM plus vouched receipts e.g hotel/meals.
Problem - For numerous months I was advised to submit an invoice along the lines of salary (e.g. 2500)+ T&S (e.g. 500) + VAT (21% = 630) on total of this. I pay my VAT every 2 months. I think I have made a huge mistake here by charging VAT on the T&S component which probably should have been excluded and treated as out of pocket reimbursal of expenses. Inuding these and charging VAT on these will give the appearance of additional income and result in higher tax which I will have to pay? To compound teh problem, I havent been keeping Diesel receipts and I never had to when I was working for government!?
Can you advise?
Thanks J

dbran

Hi

I answered in the other post.

dbran

Gardenman35

Thanks dBran