How do I handle merchant returns and credit notes?

Log credit notes immediately against the job expenses so your overall job profitability numbers remain accurate.

What records does HMRC require for digital receipt records?

HMRC accepts digital copies of receipts and invoices as long as they are legible, show the merchant details, date, amount, and VAT breakdown.

Should I mark up the cost of materials on quotes?

Yes. A markup of 10% to 20% is standard to cover your time sourcing, collecting, and transporting the materials to the site.

How to Track Material Expenses On-Site (Without Losing Receipts)

If you’re like most tradespeople, your van dashboard is probably covered in crumpled paper receipts from trade counters and builders merchants. By the time tax season rolls around, half of these receipts are lost, faded, or completely illegible.

Failing to claim these expenses means you are paying too much tax, and failing to map them to specific jobs means you don't know if a project was actually profitable. Here is how to keep your expenses organised on the road.

Step 1: Capture Receipts Instantly

Do not let receipts accumulate in your wallet or van. The moment the trade counter assistant hands you a receipt, take a photo of it. Modern tax authorities accept digital copies of receipts for deductions, so a clear photo is all you need to protect yourself during an audit.

Step 2: Markup and Map to Jobs

To understand your true margins, every material purchase must be linked to a specific job. If you buy copper pipe, valves, and solder for a bathroom job, those costs must be subtracted from that project's invoice total to determine your actual earnings.

💡 The TradesHelper Shortcut:
Instead of manually typing expense lines into a spreadsheet, you can forward digital merchant receipts directly to your Dedicated Supplier Invoices Email or snap photos of paper receipts on-site. TradesHelper extracts the supplier name, line items, and VAT details, mapping them directly to active job expenses.

Step 3: Factor in Sourcing Markup

When you spend an hour driving to the merchant, standing in line, and delivering a part to a jobsite, you are working. If you sell that part to the customer at cost, you are losing money.

Always add a parts handling markup (typically 10-20%) to cover your travel time, fuel, and sourcing expertise.

💡 The TradesHelper Shortcut:
When TradesHelper logs your scanned materials, it allows you to automatically apply custom markups to material lists, transferring those parsed items into job expenses, quotes, or invoices in seconds.