How to prove cash accounts

[selfemployedness]

Hello everyone,

I'm newly self employed, just registered in August and am a bit confused about a couple of things.

I'm a part time, self employed tour guide who takes cash payments from clients if they turn up for the guided walk. I understand that you have to keep accounts which I am doing in a cash book, but does anyone know how I could prove to HMRC that what I've entered is correct in the event that they queried it?

Also, I've just received my Unique Number and wondered when I'll have to fill out my first tax return and whether they'll expect me to have figures up until the end of tax year.

Thanks for reading and I hope you can help!

[bovine]

I would just keep a logbook of you have many you have one each one. If HMRC ever wanted to check you out, they would send someone along undercover and count how many and compare against what you have said!

Im sure in reality they wouldnt do that, but they do similar things to restaurants. I would imagine they would be happy with your records. Just dont be tempted to fiddle them.....

[selfemployedness]

Thanks Bovine,

I already keep a little log book to record how many people turn up for each walk, what the price is and then what the day's total takings are. I hope that's sufficient because I can't accept cheques or card payments.
It's a bit daunting starting out!

[elainec100@cheapaccounting]

What you have sounds find. Have a read of my blog on your accounts here:

http://www.cheapaccounting.co.uk/blog/?p=153

[MyAccountantOnline]

The record you are keeping of your income sounds fine to me.



Also, I've just received my Unique Number and wondered when I'll have to fill out my first tax return and whether they'll expect me to have figures up until the end of tax year.


Your first tax return will be for the tax year to 5 April 2011 - you can do this yourself or get an accountant to do it.

If you want to do it yourself this isnt a bad place to start http://www.hmrc.gov.uk/sa/index.htm but (I am of course bias;):)) it neednt cost a huge amount to get an accountant to look after your tax affairs for you and in that way you can be sure you are claiming all expenses possible, the tax return is correctly completed, and you pay no more tax than you need to.

[selfemployedness]

Hi Nicola,

Is it correct that if I submit my tax return online before Jan 31st I'd have to include figures up until April 5th 2011? Sorry if I'm being dense but how could I know what my takings were going to be? :|

[MyAccountantOnline]

Hi Nicola,

Is it correct that if I submit my tax return online before Jan 31st I'd have to include figures up until April 5th 2011? Sorry if I'm being dense but how could I know what my takings were going to be? :|

The deadline date of 31 January 2011 is for tax returns to 5 April 2010.

The deadline for a tax return to 5 April 2011 will be 31 January 2012:)

Hopefully panic over:)

Please dont leave it that long though - it gives you no time to prepare for the tax liability etc.

[selfemployedness]

Ah, that sounds more like it! My blood pressure has just dropped back to normal. Thanks for your help :)

[MyAccountantOnline]

Ah, that sounds more like it! My blood pressure has just dropped back to normal. Thanks for your help :)

Thats good to hear:D

No problem - glad to have helped.