receipts from freelancers

[cmcp]

hey ukbf

i work full time at the moment, but have started taking on freelance web contracts to make a wee bit more money on the side.

i've made a few grand, and will have to register with the inland revenue so i can do a tax return at the end of the year.

it's my understanding that i should keep all my receipts, as these bring my profit down so i pay less tax on it.

however, if i subcontract other freelancers on elance to do little parts of my sites for money and they're from india or the usa, do i just ask them for receipts to add to my records or is this a special circumstance?

any pointers for what i should look out for?

the same with google adwords. im not sure they give me a receipt for each time they charge my credit card...

thanks in advance for all your help guys :)

kindest regards

craig

[Philip Hoyle]

There isn't a legal requirement to keep receipts (if you aren't vat registered) but the tax inspector may well require "proof" that you have made the payments and that they were for business purposes - a receipt/invoice does this, but you can also keep copies of emails, screen prints, other documentation, etc if you don't have receipts for everything.

[Blackberry]

Hi Craig

As Phillip says you will usually need proof of expenses paid should a tax inspector come calling, so I would recommend keeping all your receipts and invoices. Your accountant will usually want to see them as well when preparing your accounts and tax returns.

Out of interest when did you start working for yourself? you need to register as being self employed within 3 months of starting otherwise there will usually be fines to pay.

If you need any assistance please feel free to contact us.


(http://www.blackberrybookkeeping.co.uk)

[jholden]

For more on what you can claim try this link:

http://www.ukbusinessforums.co.uk/forums/showthread.php?t=69363

It has been covered in another thread.

Jason

[cmcp]

im still full time employed but i took on a contract in april.

it's went pretty well so im hoping to pick up more work like this and continue on with this type of stuff.

im phoing the taxman tonight to get registered as self employed. got a business bank account last year but never used it til now.

i'll have to get hold of book keeping software too. is it true most accountants will give you free advice at the start?

thanks for the links i'll get reading up :)