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Accounts need help

I know this a grey area but I have 2 guys I sub contract work to how should I be showing this on my accounts ? Should it show what jobs they worked on or will garden tidy up suffice

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  • PRO

    The job / work that was carried out and the address of the site would be sufficient

  • PRO
    Are you using an accounts package ?

    Would they just not be invoicing you if they were subcontractors ?

    If so, the costs would show as a supplier/sub contractor invoice referenced by its number.

    You may then assign it to a nominal code/COA if you are doing / monitoring job costing ?

    However, what ever you do, if HMRC query, they will come looking for the physical invoice to show sub contractor details to ensure THEY are accounting for their tax liability.

    You have a legal duty to keep all tax records for a number (6 ?) of years.
  • Yes they give me an invoice just has hrs worked or has it got to say what job or will garden tidy up suffice or garden services
  • PRO

    Chris, sorry, I might have misunderstood...

    You talking about what is physically shown on their invoice ?

    The description on the invoice is largely up to your sub contractors but should reflect the services they supplied.

    How it is entered into your accounts is largely down to you/your book keeper or accountant, but likely to be as my previous post

  • Yes bit of both need to put it on accounts system properly so it's not showing as a sale say for instance the sub contractor does a job for me on Monday 4hrs say mrs flower 8 hrs on Wednesday mrs bugg and 8 on Friday mrs joe and I am charging all these customers monthly obviously more than I am paying him should I be showing against each individual job or would 20 hrs garden services be ok with the week date then I just feed it on accounts package as sub contractor £ 200 ref inv number ?
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