HMRC and sub-contracting

NannaH

Just getting things straight with regards to doing 1st year’s accounts.
Husband went self employed as a gas engineer last October,  he’s been getting lots of sub contracting work and if repair work is needed, he buys the parts up front,  so they go through the business account / freeagent accounting software as expenses.  

He then invoices the company via their web portal  ( he subs for 2 currently)  for his time plus the cost of the parts, he’s allowed a 15% mark up -  he is then paid for any number of jobs all in one go - not on seperate invoices.  

So basically,  there are expenses for which he is refunded ( for want of a better word).
Do I need to account for this anywhere?  

Or is it just taken as income and taxed accordingly?  

I would assume the latter but need to clarify.  

tightauldgit

All payments you receive from the contracting company should be treated as income and then what you paid for parts etc is listed as expenses.