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• # 69861
• Mon 28 Mar 2011 08:04 PM

Hello All,

I would appreciate your help on the following three questions for a new client I am setting up.

1.  When someone is a sole trader but occasionally employs people for odd bits of work here and there, would it be better to put this expense under the nominal code for "consultancy" or under "casual wages"?  I am thinking the second but didn't know if that then meant that this person would be classed as an employee which they are not (they are employed elsewhere).

2.  Which nominal number would you usually assign to "drawings" for a sole trader?

3.  This trader prints items he designs for clients in large quantities.  Another business prints the items for him.  I am guessing this means that because they are directly for the client that these purchases should be included in a nominal code under "purchases" (e.g. 5007) rather than in the other printing nominal code 7500.  Is this correct?

Thanks very much!  Elspeth

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• # 69876
• Tue 29 Mar 2011 11:00 AM

1. I would put them under "consultancy" or whatever nominal code best reflects the service provided e.g. Cleaning if it's a cleaner.  It's illegal for an employer to pay cash in hand without deducting tax and National Insurance contributions from wages.

2. For your drawings account, change the name of one of the nominal accounts, or set up a new one, in the 3000 range to read Drawings.

3. You are correct.

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