Gardenening Company using freelancers

Adhoc S.E. freelancers used to fulfill gardening work... accounting treatment?

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I've taken on a new client who changed from being self-employed to forming a limited company a couple of years ago. Their first set of accounts and CT return are overdue so I'm trying to put everything together as quickly as possible. But I'm feeling a bit uncertain about the gardening services they are using outside workers to complete. I believe they are all self-employed and are paid "now and then" as the work is available (perhaps in winter months there is less available).

Two questions...
1. Where should the cost for these workers be posted? Cost of sales?
2. In this situation, should the IR35 rule be considered?

Replies (6)

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By Duggimon
13th Nov 2020 17:15

Assuming they aren't employees, they'll be subcontractors and I'd put them under cost of sales.

IR35 is irrelevant unless the subcontractors use PSCs.

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Replying to Duggimon:
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By Paul Crowley
13th Nov 2020 17:55

Agree
Nothing to add

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By frankfx
13th Nov 2020 19:32

IR35,no.
But CIS , yes.
Just in case overlooked.
You say you believe that they're self employed.
The CIS process should not be disregarded .
Has client undertaken tax compliance checks?

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Replying to frankfx:
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By Paul Crowley
14th Nov 2020 05:35
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Replying to Paul Crowley:
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By frankfx
14th Nov 2020 07:58

Just make sure no garden path and patio is laid alongside the manicured lawn.

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the sea otter
By memyself-eye
14th Nov 2020 16:42

"Now and then" Like it: hides a multitude of sins.
Just get the "now and then's" to invoice for their work.

Even if only 'now and then'.

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