Keeping Invoices for HMRC?

I know domestic customers don't want invoices, but incase you get audited by HMRC how do you fill in the invoice paper and you should keep it, shouldn't you?

This simple invoice is from Wilko. when the top bit was filled in (received thxs) part; it didn't go through clearly to the paper underneath.

Do you store these in a box?

There should be a blue piece of paper at the back or front of the book that you put between the sheets. You only need itemised invoices if you are vat registered.

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For sole trading on a smaller round it would suffice to have a weekly job sheet, mark jobs off as done or missed and mark them off when paid.

HMRC will understand that for £10 here and £12 there it's not worth raising 'invoices' for every job as long as you have a record of the work done and a copy of your bank statements that should suffice. A receipt book is good though for larger jobs like gutters & conservatories etc.

Also be sure to keep all your receipts to offf set against end of year earnings.

I get to the end of each month and print my spreadsheet to a pdf and keep that in a folder.

The spreadsheet has my whole months worth of work and adds up totals and works out tax so it's all there in the pdf

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So that book is an invoice book?

Because so much of the money is cash- do you have to pay that into the bank as evidence?

For sole trading on a smaller round it would suffice to have a weekly job sheet, mark jobs off as done or missed and mark them off when paid.
HMRC will understand that for £10 here and £12 there it's not worth raising 'invoices' for every job as long as you have a record of the work done and a copy of your bank statements that should suffice. A receipt book is good though for larger jobs like gutters & conservatories etc.

Also be sure to keep all your receipts to offf set against end of year earnings.

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Got an example of the weekly job sheet?

I guess it's best to get all the money paid into one account and everything from one bank account; couldn't u just use your bank statement for everything when submitting tax return?

You only have to record money recieved

So if it goes in the bank just print of your statements for the tax year

Cash, well just record what you have recieved and where it's from.

I use george for my round but I don't use it for my books as it's not accurate it's just a guide for me to work to.

You don't have to pay cash into the bank but of you do pay cash in you will want to make a not of where it's come from

Use cleaner planner. Does it all for u. Creates invoices stores them. Logs money payed rtc

Strictly if you are cash business you must keep a cash log - daily record of cash received and spent.

However as said, for most small Sole Traders all that's required is a record of work done and payments received and a record of expenses.

Best practice is to have a bank account for the business that only handles money received from your work and all expenses paid from this account too. It's not a legal requirment but keeps the accountants and taxmen happy!

Strictly if you are cash business you must keep a cash log - daily record of cash received and spent.
However as said, for most small Sole Traders all that's required is a record of work done and payments received and a record of expenses.

Best practice is to have a bank account for the business that only handles money received from your work and all expenses paid from this account too. It's not a legal requirment but keeps the accountants and taxmen happy!

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There's no need to record daily expenses. Tax man doesn't care about your expenses unless you are claiming it. All I do is keep all receipts/online invoices etc and then at the end of the year add it all up and that's that.

With regards income isn't bothered where the money has come from only that it is there. For exame if you having a load of 10 pound online payments you don't have to say that one is from joe blogs that one from Mrs Smith etc the only thing that matters is that you declare it, obviously it's helpful if you can identify that's from winow cleaning that's from a gutter clean etc.

The tax man would be more concerned with a payment made into your bank I. E 500 cash that you didn't declare. Let's say that was a gift from a friend then you would have to prove it wasn't a business payment.

Just use Aworka does Invoices, Receipts, profit and loss in fact anything £10 per Month.

Just use Aworka does Invoices, Receipts, profit and loss in fact anything £10 per Month.

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Cleanner planner dose the same. As long as you say how to got paid on the system you can see how the custy paid. Cash, cheque and bacs. Then at the end of the year you can see how much cash. Cheques and bacs you have been paid.

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