tlf5
24th July 2010, 10:35
Hi I was wondering if anyone could help me, I'm having a slight thick moment!
I am preparing some accounts for my friend, he is self employed but has done a bit of work as a sub contractor.
He raises an invoice which has materials and labour.
When he receives the payment he usually gets materials paid in full and labour less 20%.
Hopefully this is making sense so far.
He has said that the company he does the work for pay the tax on these invoices but as yet he hasn't received any paperwork to back this up.
I am unsure how to post this in the accounts as he has already had the tax deducted so doesn't want to be taxed again.
Having looked on the tax return there is a box to put this amount in but how do i show it in the accounts?
Most of the invoices are still in debtors and were paid after the year end.
If I credit sales with the total invoice amount and debit trade debtors with the amount that they will actually received where do I put the balance (20% of the labour charged)
As I say i'm having a slight blonde moment I do apologise!
Thanks in advance
I am preparing some accounts for my friend, he is self employed but has done a bit of work as a sub contractor.
He raises an invoice which has materials and labour.
When he receives the payment he usually gets materials paid in full and labour less 20%.
Hopefully this is making sense so far.
He has said that the company he does the work for pay the tax on these invoices but as yet he hasn't received any paperwork to back this up.
I am unsure how to post this in the accounts as he has already had the tax deducted so doesn't want to be taxed again.
Having looked on the tax return there is a box to put this amount in but how do i show it in the accounts?
Most of the invoices are still in debtors and were paid after the year end.
If I credit sales with the total invoice amount and debit trade debtors with the amount that they will actually received where do I put the balance (20% of the labour charged)
As I say i'm having a slight blonde moment I do apologise!
Thanks in advance