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The University sometimes pays for supplies on behalf of other people where it is not contractually obliged to do so. However, the University will ask for these costs to be reimbursed by the third party.

These charges are 'Outside the Scope' for VAT purposes as there is no supply from the University; the contract is directly between the supplier and the recipient.

E.g. The University may pay for an employee's private use of a mini bar because it is included in a hotel's invoice along with legitimate business expenses e.g. the accommodation.

When paying the invoice the private costs should be entered using the tax code 'No UK VAT' and the account code should be:

  • Source of funds: 0000 (the balance sheet) and
  • Transaction code: UNAA (other debtors)

When the individual reimburses the University it should be for the exact amount of expenditure incurred by the University and offset against the same account code.

This should be entered using the tax code 'OS - Outside the Scope'.

Please note that reimbursements are not the same as private purchases because:

  • The miscellaneous private expenses that the individual has purchased were not pre-booked/ordered by the University and there is no contract between the University and the supplier; and
  • If an item is in dispute with the supplier it is up to the individual to resolve.

Reimbursement of travel expenses by a third party - no fee for services

Where the staff member has supplied, in the University's name, a third party with a service (e.g. lecture, talk, speech) free of charge, there is no supply between the University and the third party. However, the third party has reimbursed the travel costs so that the University is not 'out of pocket'. When recording the income on UFS it is 'outside the scope' of VAT and it should be coded to:

  • Source of funds: EF** (general donations)
  • Transaction code: LFAA (donations - miscellaneous

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