Tax Question - Self Employed

[lee13]

Hi All,

I have an accounting question that I'm hoping someone can help me with!

I was an employee for a business up until the last week of August this year. I had started a cleaning business during August and called HMRC on 20th August to inform them that I had started trading. I told them I set up the business on 1st August.

On 24th August I became fully self employed, and started working full time for myself. Shortly after, I looked into setting up a business account- by the 29th September, my business account was open and ready to use. Up until this point, the money I earn't, I put into my personal account and fully recorded all transactions on my accounting software.

The questions I have is that, should I transfer the amount of money earn't in August (first transaction 13th August) and September into my business account, so that it has 'shown up' in the the business account, or should I not worry about where the money was banked, and just make sure it's fully recorded and included with my tax return?

I hope I have made this clear, however if anyone has any questions for me, please just ask.

Many thanks
Lee

 

[E Storey]

You don't have to move the money, but it might make it easier for you to remember how much you've earned if you do.

Try to sit down for a couple of hours at the end of each month and write down all you've earned/spent. then put aside an amount to cover your NICS paye bill, as you don't want to get hit with a massive bill in a years time.

 

[MyAccountantOnline]

Hi Lee

No - no need at all to transfer the funds.

Do make sure you claim all pre-trading expenses if you are going to be looking after your own accounts and tax returns.

 

[MyAccountantOnline]

...put aside an amount to cover your NICS paye bill, as you don't want to get hit with a massive bill in a years time.

I think you probably mean Self Assessment Income tax and Class 4 National Insurance