To be able to show disbursements on your invoice what you will need to do is:
- Add a new line item to the invoice.
- Add the description as “Disbursement”.
- Then have the VAT rate as N/A.
Flat Rate Scheme. If you’re on the Flat Rate Scheme then you will need to go to Settings -> Advanced Settings -> FRS N/A Turnover. Tick this option and the disbursement will not show up on the VAT return. The VAT rate should be left as N/A.