I have been told by a client that they will pay me £500.00 for a week's work, "which includes £50.00 to cover my travel costs / expenses" (their words).
When it comes to "that time of year" and I am listing how much I have earned and how much my expenses came to, how would I account for this?
My initial thought was something along the lines of this:
Total earned: £500.00 Profit: £450.00 Expenses: £50.00
I thought that I could ask for payment in the form of two cheques from my client; one for £450.00 (cost of work) and one for £50.00 (expenses); however, this then made me wonder if that would be entirely relevant as my expenses would almost certainly not be precisely £50.00.
Do I list a payment of £500.00 minus any expenses, whatever they may be? I am completely unsure.
My question, therefore, is this:
How should I list this payment of £500.00 at the end of the year considering the above information?