How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask taxadvisor.uk Your Own Question
taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 7230
Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
54961312
Type Your Tax Question Here...
taxadvisor.uk is online now

Have a question regarding turnover. All the entries on my

Customer Question

Hi. Have a question regarding turnover. All the entries on my invoices are clashes as turnover in my account system, when a high % is expenses/services bought on behalf of clients. How to I record it so these expenses doesn't form part of my turnover? Thanks, Dita
JA: Have you talked to a tax professional about this?
Customer: No
JA: Anything else you want the Accountant to know before I connect you?
Customer: The system I use is free agent
Submitted: 7 months ago.
Category: Tax
Expert:  taxadvisor.uk replied 7 months ago.

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Expert:  taxadvisor.uk replied 7 months ago.

Thank you for your question.

You should separate recharges from sakes and only sales are treated as turnover and recharges reduce expenses pertaining to services and expenses to be recharged. You should allocate a nominal ledger code within expenses and not income for recharges.

My aim is to give you a professional service. I hope this is helpful and answers your question.
Please remember to rate my service by selecting the 5 stars at the top of the screen before you leave JA today. If you need more assistance, please use the reply box below and let me know. It has been my pleasure to assist you with your question.

Customer: replied 7 months ago.
Thanks. It's still not clear to me how I do that in the system.
Expert:  taxadvisor.uk replied 7 months ago.

Thank you for your reply

You must have set up nominal codes for income and expenses in profit and loss account and balance sheet within categories of revenue income/ revenue expense/ assets/ liabilities.

Expenses to be recharged should be an account code within revenue expenses and not income.

I am happy to discuss this with you on phone to make it easier to understand.

I hope this is helpful.

Expert:  taxadvisor.uk replied 7 months ago.

Hi there

Just checking to see if you need more clarification/information or have I answered your question.

If there are no more issues, I will appreciate if you would kindly rate my service by selecting the 5 stars at the top of the screen to ensure I get credited for it by Just Answer today.

Many thanks.