Which category to use for subcontractors mileage that is recharged?

Accounting
1

Hello,

When I pay one my self-employed sub-contractors, the payment category that I use on the purchase invoice for their fees is “Sub-contractors”.

Sometime they also charge me for their mileage (which I then recharge at the exactly the same rate to the client). Do I need to use a different category for this mileage? If so, which one. Or, can I just include this in the “sub-contractors” category and enter their fee and their mileage as one combined sum?

Many thanks

2

Hello @Effie

The QuickFile support team are not registered accountants and as such would not be able to answer this.

I would reccomend speaking to your accountant on what to post.

I will leave this thread open for now as there are some accountants on the forum who may wish to comment.

3

Thanks Steve. Any helpful accountants able to give their opinion?

4

I’m not an accountant, but I created a category called Rebilled Expenses as a Direct Expense (you might call yours Rebilled Mileage). I also ticked the box to allow the code to be used on Sales invoices (looking at the chart of accounts, click on Options on that new account, then Settings). Then that category should zero out periodically.