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

baileyqueens

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

How would that income be taxed? By the sole trader tax return. No you are fully correct, you can't do it.

ExcelAnt

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

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

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?

AK002

Yeah you can't do that.