Self Employed Recepts to keep?

[bud01]

I am going to be filling as Self Employed next April for at least six months of work this year.

I am working 7 to 10 hours a day at a rate of £30 an hour.

My costs are minimal but I have started to save my travel recepts and tickets, I travel in from zone 6 to zone 1 and normally collect either monthly six zone travel cards £200 or £8 to £15 zone 1 to 6 travel cards which I use exclusively to get to work.

I also understand I have a substance amount I can use daily? of £5.

I intend some IT equipment and possible training materials or courses.

If I have to take a taxi to a customers house or buy a lunch/dinner for a prospective client how does this swing next april.

Also any tips on my next six months to years record keeping, what are some things I need to keep in mind to help my tax filling?


Any advice appearicated.

thanks

 

[scottytruman]

I think that's already everything, just try to keep each and every single receipt of your transaction no matter how small or big it is.

 

[Philip Hoyle]

If you are a sole trader rather than a limited company, you won't be allowed your daily lunch/subsistence at a regular workplace - that's only when you're working outside your normal working pattern, i.e. when you go away for a course or client meeting.

A meal with a client is entertaining which is likewise not allowed for tax purposes, although the travel to it would be OK.

Your daily commute may also not be allowed, depending on exactly what you do and where you are based. You'd need to prove your permanent work place was your home, which isn't going to be easy if you do the same commute every day and then spend most of your working time at the same client premises.

Ask for receipts for everything you buy - if you can't get a receipt, make a note of what/when you spend in a small notebook or cheap pocket diary. You also need to download some book-keeping software (http://www.vtsoftware.co.uk/cashbook/index.htm is free an excellent for simple record keeping). Don't forget to keep copies of your sales invoices also.

 

[Davek0974]

I am going to be filing as Self Employed next April for at least six months of work this year.

Do you not have to register as self employed before you start working as such?

 

[KAP Accountancy]

Hi there,

If you haven't already registered as self employed but are currently working for yourself then you need to register with HMRC as soon as possible as you should be paying class 2 national insurance, i believe there can be penalties for registering late.

I agree with Philip, VT is a great piece of software, infact i use their accounts package myself.

Couple of things i always recommend to clients which helps the accountant (and keeps your fees down):
1. have a seperate bank account for business use.
2. write on the bank statement what items are if its not obvious.
3. keep receipts in either date order and by type.

Regards
Kris

 

[Bill Ryan]

I used to staple all my receipts to a sheet of paper one or more each month and keeping everything easily visible.

For train and tube tickets they can overlap a bit but still keep the date and price visible to the reader. It is also easiier to keep in the long run as they are flat and go in the big envelopes for the 6+ years storage. Much better than in a lump with an elastic band.

Easy and my accountants loved me.

 

[MyAccountantOnline]

Here's some links which may help -

http://www.hmrc.gov.uk/selfemployed/register-selfemp.htm

http://www.hmrc.gov.uk/sa/record-keeping.htm

I too also recommend VT cashbook - its a super package for small businesses who just want something simple to record in's and out's. We dont use it for our own accounting as we need a full accounting package but have many clients who use it and rate it very highly too.