Self employment expenses help

cdo23

My partner is employed full time but also does jobs as self-employed. I can do basic bookkeeping and I record his invoices, income, expenses etc and can do his self-assessment for him. A lot of the time he does his self-employed jobs with his brother so after the cost of the materials they split the rest. Can I count the half he gives to his brother as a subcontractor or some other expense so he isn't getting taxed on his brothers share of the money as all the money gets paid into my partners' bank account? And if so what would I need to record this?

Thanks

comeandgo

I’m assuming this is not a partnership with brother. The brother needs to invoice and your partner pay on invoice, you say materials, are they construction workers? If so your partner then needs to deduct CIS tax from his brother and pass to HMRC. I think it would be easier to get the customer to pay the brother direct.

cdo23

Thanks for the quick response. I thought this would be the case. They are painter and decorators however the work they are doing is not within the construction industry as its for a letting agency, decorating flats when tenants move out.