Sole trader

Sole trader

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A sole trader plumber has an account for materials with a third party. His father, who is a painter, order goods on his account and then pays his son for his element. The reason behind it is to get volume discount. The question is how should the payment be treated. Is the plumber acting as a reseller and as such  the element in respect of his father should be booked as turnover and offset the costs against it ( ie zero margin).

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By TheBooks
01st Nov 2013 10:44

I would say it doesn't make much difference.

However, if one of them is vat registered and the other isn't there could be a problem

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