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Ben1991
Level 1

Invoice for cost of materials/ingredients

We are a catering business and often pay for ingredients that are then invoiced to the client - we don’t make any money on the ingredients we are simply passing the cost on to the client at the end be. They have been paid for already by us and then we are reimbursed by the client. How do I categorise the payment from the client, if it is categorised as business income we would have to pay tax on it? It isn’t income it is simply just being reimbursed for the ingredients? 

1 REPLY 1
SarahannC
Moderator

Invoice for cost of materials/ingredients

Hello there, @Ben1991.

 

I want to make sure you're able to assign the right category of the payment from your client.

 

In QuickBooks Self-Employed, it's important to categorise the transactions correctly. You can use this article for guidance: Categories and how to categorise transactions in QuickBooks. Also, if you want, you can consult a tax advisor. They can share expert advice on whether you should categorised it as business income and pay tax on it. This is to make sure everything is accurate. 

 

You can also check here for addition information: Custom categories in QuickBooks Self-Employed

 

You can always go back here and add another post if you need assistance with QuickBooks Self-Employed.

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