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Tax man

mark lee

Member
Messages
192
Location
Wiltshire
So what receipts do you keep and what are not needed? I seem to have a mountain of personal spend receipts, I have my diesel receipts any thing I spend on the van receipts maintenance filters hoses and so on , Do I need to keep every till receipt seems bit stupid as always pay with my card.

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I take a picture with my accounting software app and save them digitally, which my accountant accepts. Don't know if that is allowed in the UK though, but it's been legal in Scandinavia for a while.

 
My accountant gave me a plastic folder I throw all bank statements and receipts in there also a copy of what earnings I have earned, then let her sort it out as I’m a useless git. 

 
You have to keep every receipt to claim it in your annual return. The tax man doesn't allow something scribbled down as a legitimate receipt. It is a very useful practice to list and then tally up each month what you have spent on diesel, repairs and renewals, insurance etc. If you then tally up how much you've earned that month you can roughly work out your monthly profit. Set aside 20% of everything over £800 for your tax bill and accountant and then you won't get any nasty shocks.

You can do this in a diary or on your computer as this info is for your eyes only. A lot of people fail in business because they don't know how they are doing each month. 

 
My wife gives each receipt a number, keeps each month receipts in separate folder. Writes income n expenditure in a small cash book. At present i pay £30 a month d/d. Accountant does a tax form for me, my wife n one for partnership. Gives me a small booklet of breakdown of costs.

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I have a free expense app on my phone to keep records just in case receipts fade etc which stores pictures of them

I keep all receipts and put them on my spreadsheet

I have no need for an accountant as i am fluent in excel so have linked pages 

1 for work to be done with formulas for next date of clean etc

1 for work actually done with payments and method of payment

1 for expenses

1 summary page which tells me what i have done weekly, monthly and annually and tells me how much to put away for tax and how much profit left

If you can manage that you have no need for an accountant

 
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I have a free expense app on my phone to keep records just in case receipts fade etc which stores pictures of them

I keep all receipts and put them on my spreadsheet

I have no need for an accountant as i am fluent in excel so have linked pages 

1 for work to be done with formulas for next date of clean etc

1 for work actually done with payments and method of payment

1 for expenses

1 summary page which tells me what i have done weekly, monthly and annually and tells me how much to put away for tax and how much profit left

If you can manage that you have no need for an accountant
Does it work out depreciation, how much you can claim for working from home, etc ? Paying an accountant a small amount each month probably pays for itself in tax savings and peace of mind. Especially if you're a newbie and have no idea what you can and can't claim for. I did my first 4 years tax returns as a sole trader and was called in to the tax office to go through one year, 2nd year I think. Had an accountant for 14 years and never been asked again, hopefully haven't just tempted fate.

 
My brother works in finance (offshore investments etc and has a portfolio of way over £10m invested through him)

He knows the laws inside out as he has too and still does his tax without an accountant just advice of his company's one if needed

Anything i am not sure of i speak to him and if he doesn't know he can find out for me

I claim for percentage of house used for office and utilities etc

Unless you have staff etc it is easy if you have the right info and do research

Well for me anyway but if unsure get an accountant is good advice

 
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Depreciation, amorisation n computation are words i hear my accountant using. Ive not a clue, just like they dont have a clue what a high modulus carbon fibre pole is with a gardiners swivel. In the end you pay someone to do your books, their the speacialists n it comes of your tax bill.

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Depreciation, amorisation n computation are words i hear my accountant using. Ive not a clue, just like they dont have a clue what a high modulus carbon fibre pole is with a gardiners swivel. In the end you pay someone to do your books, their the speacialists n it comes of your tax bill.

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I agree but i have done it this way for years and i actually (sad i know) enjoy it

I like to know that i have done everything myself as i am a stubborn bugger

 
I'm quite surprised your brother hasn't set up a limited company. Far more tax efficient, he wouldn't however be allowed to do his own tax return. 
How he works is a strange setup

He works from home and has his own pa based up north in an office 

Technically he is only allowed to work for the firm that supplys the leads, pa, company bmw etc

Fsa laws etc stop him working for anyone else at the same time

Whatever he invests for them he is on a percentage of

I have no idea how it works but he still has to do tax returns

I know if he left and worked 100% for himself he would be rich as he could earn an absolute fortune but he has contracts etc that state he can't approach existing customers if he left and can't work in the same field for 6 months 

 
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