Can a sole trader, charge for their time preparing accounts?

baileyqueens Registered Posts: 27 Dedicated contributor ? ? ?
As above, I was asked this question this morning. They are a sole trader who owns a building company and want to know if they charge say £20 per hour to their clients for their service and they use 5 hours worth of time doing therown accounts can they then charge £100 to their accounts?

I dont think you can I just want to double check


  • Bluewednesday
    Bluewednesday Registered Posts: 1,624
    How would that income be taxed? By the sole trader tax return. No you are fully correct, you can't do it.
  • ExcelAnt
    ExcelAnt Registered Posts: 80 ? ? ?
    Im a bit lost on the question. Your saying they would charge their clients £100 (surely fine if the client pays they pay, doesnt matter what you do for them :)

    You then say you charge to the accounts. How can you charge something twice?
  • Bluewednesday
    Bluewednesday Registered Posts: 1,624
    I assumed that baileyqueens meant putting £100 in the accounts for completing their own bookkeeping. As in Mr Evans does Mr Evans bookkeeping and charges £100 to the accounts for his time in doing it.
  • Clintm15
    Clintm15 Registered Posts: 248 Dedicated contributor ? ? ?
    I'm too a little confused by the question. A sole trader isn't a separate legal entity so surely they can't charge themselves?
    Level 2 - 2011
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    Level 4 - 2013

    F4 - Corporate Law - Dec 2015 (passed)
    F5 - Performance Management - Dec 2014 (passed)
    F6 - Taxation - Dec 2013 (passed)
    F7 - Financial Reporting - Jun 2014 (passed)
    F8 - Audit & Assurance - Dec 2015 (passed)
    F9 - Financial Management - Jun 2015 (passed)
  • AK002
    AK002 Registered Posts: 2,492
    Yeah you can't do that.
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