Hello,
I’m a freelance interpreter and my agency pays me a flat fee for travel expenses. It may be less or more than what I actually pay. How can I log it on my invoice?
Thanks in advance.
New line on the invoice for the travel paid to you.
Thank you for your answer Paul. I am attaching a screenshot because I am wondering what I should log as a category, as I am assuming it impacts my taxable income. Unless I am wrong, travel expenses are not taxable. Does that make sense? Screen Shot 2021-03-03 at 10.10.30|690x367
It’s not taxable in the sense that they are reimbursing you for your own travel expenses, so the net tax is zero. But its still part of your turnover is it not?
Invoice 100 plus travel of 20 equals 120, you pay 20 in travel, net equals 100 which is what you pay tax on
With regards to the category, its sales. Or create your own if you wish, but it still forms part of your turnover so makes no difference.
What does make a difference is the category you use to show the travel expense you actually paid for.
Also if they pay you more travel costs than you actually use, then of course that is taxable
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Okay, I understand better now. My client is not reimbursing me the exact amount of my travel expenses. They may pay less or more than my expenses depend on if I am staying local or not. So, if at the end of the year I received more than what it cost me - Should I declare this money as an income?
You declare it as income as its paid.
As I said, if they pay you 100 and 20 travel your invoice is 120. Because that’s what you’ve received.
If you only spend 10 on travel, then your taxed on 110.
So sales equal 120
Travel expense equals 10
No need to declare anything extra at year end, it will already be accounted for.
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Thank you for the clarification
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