A client works in TV behind the camera and operates through a company (FRS105).
He has started to use an agency who invoice the end client for the job price (agreed with my client) plus their commission %.
The agency are paid by the end client and then pay my client based on his invoice which shows the agreed job price less the commision amount as a discount so the amount payable is equal to the turnover recorded in Xero.
Is this correct in terms of recognising turnover for accounts and VAT?
Related resources
Replies (2)
Please login or register to join the discussion.
Sounds like the agency is acting as a temp recruitment agency, in which case I believe it is correct.
You’re considering the position of having an agent; the sales invoice to the tv co would be in you clients name, paid to the agent, who would then pass a statement and the net cash onto your client.
I would have recorded the job price as turnover, and the commission as a debit to the P&L.