Goodwill

Hi Guys,

I made a good will payment as gesture to a sub-contractor/freelancer, who I hired but before they started work, no longer required.

What is the best way to deal with this. At present it is logged under ‘Goodwill’ but this lists it as a fixed asset, so I’m wondering if there is something else I can tag it as, as I do not have an invoice for it.

Regards
Donna

That should be part of sub contracting cost not Goodwill as an asset

Thank you for your response, do I just log it as a sub-contractor then? What about the lack of invoice?
Regards
Donna

You can try get the invoice if not keep correspondence as record for HMRC inspection

It was a paypal transaction, so can I use the transaction record?

yes that is part of trail, also good idea to keep why payment was made and work abandoned with out asking for refund