Hi there,i wonder if anyone could help me with this question ?
Parcel delivery courier driver (VAT registered) uses self employed subcontractors services ( other courier drivers) to deliveries in his area as he himself can not cope with the amount of work.How to treat the payment to the subcontractors.
What is it correct process for the invoicing:
1.Courier driver (VAT) registered invoices companies requiring his service. amount +VAT (Customer) Money coming in -Revenue
2.Sucontarctors (self employed) invoice Courier driver at the end of the month for the work they did in his area?-Money going out-
Subcontractors can not be treated as his employees as they are self employed and provide services for few other parcel delivery companies.
My question will be how to treat payments to these subcontracting drivers?
Not too sure where the difficulty is here, so I may have missed something. It would appear the sub contractors are invoicing the courier, so post those to 'sub contractors', then pay off as usual.
Agreed with Rob, not sure what the question is? Subcontractors are just costs like anything else? You get an invoice, you pay it? Show as subcontractors on the profit and loss?
I agree, assuming that you're accounting for the main delivery driver? The subcontractors should be invoicing him and those invoices should be coded to the relevant cost/expense account and paid just like any other invoice.
