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

baileyqueens
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

Comments

  • Bluewednesday
    Bluewednesday Registered Posts: 1,624 Beyond epic contributor 🧙‍♂️
    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 Epic contributor 🐘
    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 Beyond epic contributor 🧙‍♂️
    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?
    AAT
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  • AK002
    AK002 Registered Posts: 2,492 Beyond epic contributor 🧙‍♂️
    Yeah you can't do that.
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