Can I do this?

[EmmaReed84]

One of my clients is a hairdresser and does my hair and my youngest son's hair.

Usually I just pay her the cash, but last month I had two days off, so deducted her invoice accordingly. When she did my son's hair, she said not to worry about the cash and to just take it off the bill (if I didn't mind) this worked out better for me, so did this.

My question is, if she does my hair which is £45, and I deduct it from the invoice, do I put down the new, lower amount in my accounts as that is what she has pysically paid me? Or do I still have to put the full amount she would have paid, had I not had my done?

[Tinkerbell1979]

I would say full amount because you are just spending it before you actually get it if that makes sense.

[shortstuff]

I would guess that you still put the full amount through as thats what youve earned. The fact that the cash didnt change hands doesn't matter really.

[EmmaReed84]

Thank you! x

I might have to carry on with the cash payments, as we are saving for a mortgage, so if I have an invoice for £x amount, but put £45 extra through the books, it will look dodgy.

[shortstuff]

If I was doing something like this I would grnerate the invoice as usual but add a lone saying discount as agreed £45. That way it is all documented correctly x

[caz3007]

On of my parents does cleaning and consider asking if she wants to do a one of blitz of my kitchen for me. I would do her invoice and receipt for her normal amount as that's her childcare cost but tell her to knock off the cleaning amount from the cash she physically pays x

[hectors house]

Full amount has to be entered through your accounts I am afraid - you can do her bill and deduct the money she is charging you for your hair, so she pays you a lower amount but full amount must go through books.

Payment in kind - although just thinking back to those 2 policewomen who looked after each others children when they worked on the opposite shift, Ofsted tried to say they should be registered but then backed down and because neither one was charging the other one then the tax office didn't want to know either. But if they had been Ofsted registered each one would have had to invoice the other one and declare it as income - thoughts anyone?

Recently I asked a mindees parent if I could buy her sons old all in one suit to use for my grandson, she said I could just have it, however that week I looked after her son an extra morning and didn't charge her as a thank you for the coat - I entered child in register but chose not to charge, under my own logic above - I guess I should enter the amount through books as I got payment (allbeit a coat) as payment!

[k1rstie]

I think there s a big difference between a secondhand coat ( that is a gift) and a hair cut that is actually a paid service.

I think it should be recorded for tax. Sorry

[Chatterbox Childcare]

Go with what you invoice shows - if your bill is £100 put £100 in your accounts regardless of anything you have deducted