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    • sprucegs
    • By sprucegs 9th Jun 17, 7:57 PM
    • 34Posts
    • 1Thanks
    sprucegs
    self employed cash?
    • #1
    • 9th Jun 17, 7:57 PM
    self employed cash? 9th Jun 17 at 7:57 PM
    How do I declare cash if I'm self employed? I have done a job for someone who didn't want an invoice and said he just wants to pay cash....
    How do.i declare this cash? I want to put it in my account and obviously declare it on my tax return but with him not wanting an invoice what should.i do?
    Thanksm
Page 1
    • Dazed and confused
    • By Dazed and confused 9th Jun 17, 8:09 PM
    • 1,768 Posts
    • 769 Thanks
    Dazed and confused
    • #2
    • 9th Jun 17, 8:09 PM
    • #2
    • 9th Jun 17, 8:09 PM
    How about,
    Accept cash payment for work done
    Pay money into the account
    Prepare invoice as normal
    Throw clients copy in the bin
    Declare income on tax return
    • phill99
    • By phill99 9th Jun 17, 8:56 PM
    • 7,981 Posts
    • 7,221 Thanks
    phill99
    • #3
    • 9th Jun 17, 8:56 PM
    • #3
    • 9th Jun 17, 8:56 PM
    As above. I often get given cash but the customer doesn't want a receipt. I simply raise an invoice as normal, print off a copy for my files, put the cash into the bank. The bank statement then shows an amount of cash going into the bank which tallies with the invoice.


    My accountant is perfectly happy with this and the HMRC haven't questioned it in the 14 years I have been in business.
    Eat vegetables and fear no creditors, rather than eat duck and hide.
    • sprucegs
    • By sprucegs 12th Jun 17, 8:55 PM
    • 34 Posts
    • 1 Thanks
    sprucegs
    • #4
    • 12th Jun 17, 8:55 PM
    • #4
    • 12th Jun 17, 8:55 PM
    Thankyou.

    Does it matter when the money is out into the bank? Obviously befor the end of the tax year, but can I do a few jobs then put the money in all at once?

    Also is there anything against doing work for close family? Parents, siblings etc?
    • bugslet
    • By bugslet 12th Jun 17, 9:23 PM
    • 5,546 Posts
    • 27,441 Thanks
    bugslet
    • #5
    • 12th Jun 17, 9:23 PM
    • #5
    • 12th Jun 17, 9:23 PM
    You can out money in the bank, or not, or some of it. As long as you account for it.

    You can do work for family, why not from an accounting log.

    I think you are over thinking this.
    • phill99
    • By phill99 13th Jun 17, 7:51 PM
    • 7,981 Posts
    • 7,221 Thanks
    phill99
    • #6
    • 13th Jun 17, 7:51 PM
    • #6
    • 13th Jun 17, 7:51 PM
    Thankyou.

    Does it matter when the money is out into the bank? Obviously befor the end of the tax year, but can I do a few jobs then put the money in all at once?

    Also is there anything against doing work for close family? Parents, siblings etc?
    Originally posted by sprucegs


    You can work for who you want.


    You don't need to actually put any money in the bank. You just need to do what is classed as 'cash accounting'. However, I have been in business for 14 years and still don't understand cash accounting so still find it easier to put it in the bank as I receive it!!
    Eat vegetables and fear no creditors, rather than eat duck and hide.
    • trailingspouse
    • By trailingspouse 13th Jun 17, 10:28 PM
    • 2,259 Posts
    • 3,204 Thanks
    trailingspouse
    • #7
    • 13th Jun 17, 10:28 PM
    • #7
    • 13th Jun 17, 10:28 PM
    Putting it straight into your business bank account (I assume you have a business bank account that is separate from your personal account?) keeps things simple - it avoids the 'back pocket' syndrome, where money goes into the back pocket and gets spent without ever hitting the books, and it also gives you the opportunity to put 1/3 of it to one side for future tax liabilities.

    And just because your client doesn't want an invoice or a receipt, that doesn't mean you don't give them one. If they want to throw it in the bin that's up to them. Invoices and receipts allow you to keep track of who owes you money and who has paid - a fundamental part of running your business. Do it right - and don't allow your customers to dictate how you run your business.
    Last edited by trailingspouse; 13-06-2017 at 10:30 PM.
    • sprucegs
    • By sprucegs 15th Jun 17, 8:21 PM
    • 34 Posts
    • 1 Thanks
    sprucegs
    • #8
    • 15th Jun 17, 8:21 PM
    • #8
    • 15th Jun 17, 8:21 PM
    Thankyou. I dont currently have another account for my self employment however this is something I will be doing very soon. It will be easier with a separate account. I don't earn a lot, I'm young and fortunately don't have many overheads but I'm hoping to slowly build things up and gain more customers when I can.
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