Recording expenses without receipts + startup costs

[gmc83]

I posted these questions in the e-commerce forum, but was advised I might get a better response here.

'Recently i've had success with selling on ebay and amazon and have decided to make a go of it as a full time income. The goods I sell are nearly all 2nd hand (mainly books on amazon and computer games + vintage clothing on ebay). I've been mainly sourcing items for selling from car boot sales, jumble sales, book sales etc. My question is how do I record these purchases without a proper receipt. Can I create my own and fill it in with the date, amount spent etc? I understand that the revenue will want some form of proof as I could just be making the numbers up. Usually before I go to one of these sales i'll go to the bank for cash, would tying up withdrawal receipts with the dates of the sales help?

Also when it comes to recording sales, should I make a print off of every item that is sold on either ebay or amazon and also record it on a spreadsheet?

I'm going to be trading as a sole trader.'

'I've got a question regarding the start date for self employment. I've bought shelving, some carpet tiles for kitting out the small unit that i'm planning to work from. Can I claim these expenses if they were bought before the start date? I've also got some stock that i've been accumulating recently with the intention of selling once everything is in place. Is it ok to have done this or have I technically already started the business even though i've not made a sale.'

Thanks

 

[MyAccountantOnline]

These links should help -

http://www.hmrc.gov.uk/startingup/keeprecs.htm

http://www.hmrc.gov.uk/manuals/bimmanual/bim46355.htm

 

[gmc83]

Thanks for the reply.

Regarding the 'qualifying pre-trading expenditure', is there anywhere that lists what 'qualifies'?

The link to HMRC states:

'Sometimes you may not get evidence, such as a receipt, for cash expenses, especially where the amounts are small. If this happens, make a brief note as soon as you can of the amount you spent, when you spent it and what it was for. We don't expect you to keep photocopies of bills, although you may find them useful.'

In my case it will be a lot more often than just 'sometimes'. The amounts will be small e.g. 50p for a book, but I could be buying 20 books at that price. Or having coming back from a car boot sale having spent over £50 on items that have cost me 50p to £5.

I was thinking of making a template receipt for each sale that I go to then afterwards make a note of what was bought eg

10 books at 50p each
5 books at £1 each
5 computer games at 2 each

Would this be sufficient? I think it would be clear from my sales activity that these are the types of items that i'm buying.

Any thoughts are appreciated.

Thanks

 

[MyAccountantOnline]

Regarding the 'qualifying pre-trading expenditure', is there anywhere that lists what 'qualifies'?

Its basically expenses which are for your business. You wont find a specific list.

....I was thinking of making a template receipt for each sale that I go to then afterwards make a note of what was bought eg

10 books at 50p each
5 books at £1 each
5 computer games at 2 each

Would this be sufficient? I think it would be clear from my sales activity that these are the types of items that i'm buying.

It is very difficult in reality when buying stock like this - I think your suggestion is good note the date and place you bought the item(s) and if at all possible ask for receipts.