Expenses
Question asked by Sarah Nar 6 days ago
I have a sole trader £6 monthly account. How do I deal with expenses that will be charged on an invoice to the client?
Hi Sarah,
Welcome aboard!
No problem, in this case, you must record the expense incurred normally, and treat the payment from customers as income. Any profit made on the re-charge amount will be taxed by increasing taxable profit, or any loss made on re-charge amount, will reduce taxable profit. If they net to zero, there is no effect on profit.
Tommy
You must 