I sole trader who travels to different places receives travel and subsistence from their clients. Their payslip is showing xxx of hours worked , plus a mileage and subsistence allowance.
Is the whole amount recorded as Income , or the mileage and subsistence part posted to expenses, travel etc? No tax or NI has been deducted at source.
Can you give us a little more information please so that we can help you? You have said that you have a sole trader but also that they get payslips. Having a payslip does indicate that he is actually employed by his clients and therefore any income and expenditure from that employment would not feature in the sole trader's accounts. There is a separate part on the SA form for filling in any employment details and this would be based on his year end P60.
-- Edited by Dinky on Friday 22nd of August 2014 12:55:43 PM
It may be a payslip but just for info services. I have lecturers with the same, Dinky
The whole amount is shown as income, and the actual travel and subsistence costs are shown as expenses in the accounts, Georgie. That's assuming you find that they are indeed self employed, and not employed.
-- Edited by FoxAccountancyServices on Friday 22nd of August 2014 12:58:48 PM
Yes you are correct, the payslip is just for info.
That's what I started to do in VT. Post the whole amount as income and analysis the mileage and subsistence parts to expenses....then I look through the receipts and see receipts for travel expenses and a mileage log to the same place as where they worked. So in effect if I post those wouldn't I be claiming twice?
Georgie, you need to post it all as income as you have done but only claim for the actual expenses/mileage that has been incurred since it is possible the client charges £1 per mile to the client but of course can only claim back 45p per mile.
Sorry I'm confused... Are you saying to post the whole amount that is on the payslip to income then post the clients train fares, mileage and travel lodge receipts as expenses?
The whole amount on the payslip is considered as income, and then, the "actual" costs to your client, for travel and subsistence, are posted as expenses - the actual costs being what they themselves have paid out. You can use their travel and meal invoices for this, and if mileage is being used, claim 45p per mile for the first 10K miles and 25p thereafter.
