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    • purpleroad
    • By purpleroad 10th Jul 17, 1:43 PM
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    purpleroad
    Keeping all paperwork for tax return
    • #1
    • 10th Jul 17, 1:43 PM
    Keeping all paperwork for tax return 10th Jul 17 at 1:43 PM
    Is it best to keep all receipts (for tools etc), invoices and everything else in a big box for each tax year?


    Use one bank account for all transactions including having tax credits paid into?
Page 1
    • Pennywise
    • By Pennywise 10th Jul 17, 2:34 PM
    • 9,328 Posts
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    Pennywise
    • #2
    • 10th Jul 17, 2:34 PM
    • #2
    • 10th Jul 17, 2:34 PM
    Yes, keep everything and also keep your private bank account statements (and credit card statements) if they're used for business transactions.
    • purpleroad
    • By purpleroad 13th Jul 17, 8:00 AM
    • 54 Posts
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    purpleroad
    • #3
    • 13th Jul 17, 8:00 AM
    • #3
    • 13th Jul 17, 8:00 AM
    Best to have tax credit payments paid into same business account? As a handyman/window cleaner and there is so much cash involved not sure the best way to record this and what needs to be recorded to keep the taxman happy. On my phone would be easiest and convenient.
    • Pennywise
    • By Pennywise 13th Jul 17, 8:47 AM
    • 9,328 Posts
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    Pennywise
    • #4
    • 13th Jul 17, 8:47 AM
    • #4
    • 13th Jul 17, 8:47 AM
    Lots of phone apps for cash based tradesmen. Google for Sage One and Quickbooks to start with and take the trials.
    • paddyrg
    • By paddyrg 13th Jul 17, 11:54 AM
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    paddyrg
    • #5
    • 13th Jul 17, 11:54 AM
    • #5
    • 13th Jul 17, 11:54 AM
    Basically, keep everything. Everything. Better still, keep each month in an envelope and 12 envelopes in your box. Your annual return is accepted on trust, but if you get a random audit, they'll pick a couple of random periods and if they're all enveloped up and in good order, that's no bad thing.
    • purpleroad
    • By purpleroad 16th Jul 17, 10:58 PM
    • 54 Posts
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    purpleroad
    • #6
    • 16th Jul 17, 10:58 PM
    • #6
    • 16th Jul 17, 10:58 PM
    Basically, keep everything. Everything. Better still, keep each month in an envelope and 12 envelopes in your box. Your annual return is accepted on trust, but if you get a random audit, they'll pick a couple of random periods and if they're all enveloped up and in good order, that's no bad thing.
    Originally posted by paddyrg

    What is kept in each envelope?
    • paddyrg
    • By paddyrg 17th Jul 17, 1:39 PM
    • 13,079 Posts
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    paddyrg
    • #7
    • 17th Jul 17, 1:39 PM
    • #7
    • 17th Jul 17, 1:39 PM
    What is kept in each envelope?
    Originally posted by purpleroad
    Just having one a month, makes everything easy to find Feel free to have any filing system you like, this is just a simple one with a useful enough resolution.
    • purpleroad
    • By purpleroad 20th Jul 17, 11:22 PM
    • 54 Posts
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    purpleroad
    • #8
    • 20th Jul 17, 11:22 PM
    • #8
    • 20th Jul 17, 11:22 PM
    Will look into all this. Basically as window cleaner I would record down the hours customers and money taken in each day somewhere maybe an app. In envelope keep all invoices ( asking to be paid paper) and receipts- (tools I bought) which can be written off against tax?
    • martindow
    • By martindow 21st Jul 17, 11:25 AM
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    martindow
    • #9
    • 21st Jul 17, 11:25 AM
    • #9
    • 21st Jul 17, 11:25 AM
    Will look into all this. Basically as window cleaner I would record down the hours customers and money taken in each day somewhere maybe an app. In envelope keep all invoices ( asking to be paid paper) and receipts- (tools I bought) which can be written off against tax?
    Originally posted by purpleroad
    Expenses reduce the profit on which tax is paid - not directly taken off the tax bill.

    Personally, I would use a notebook to record the work and takings each day. You can transfer the figures into a spreadsheet later.

    I print out monthly spreadsheets so I have paper records. Relying on computers entirely even with backups seems an unnecessary risk.
    • purpleroad
    • By purpleroad 17th Aug 17, 11:14 PM
    • 54 Posts
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    purpleroad
    As finding software complicated to use. My gardener friend just has a book he writes down (in columns)-


    date invoice reference number who from amount with a tick if paid.


    I guess do that to keep them happy.


    Would need to go back and look months work in diary as hjasnt been recorded and record it and write out invoice etc I guess. That will be tricky working out what was done etc
    • 00ec25
    • By 00ec25 18th Aug 17, 1:17 PM
    • 5,358 Posts
    • 4,699 Thanks
    00ec25
    As finding software complicated to use. My gardener friend just has a book he writes down (in columns)-


    date invoice reference number who from amount with a tick if paid.


    I guess do that to keep them happy.


    Would need to go back and look months work in diary as hjasnt been recorded and record it and write out invoice etc I guess. That will be tricky working out what was done etc
    Originally posted by purpleroad
    a written record of who paid you (your income) and who you paid (your expenses) should help you when it comes to doing your tax return. It would be better to have at least a column only for income figures and a separate column only for expenditure figures to make totalling up easier

    for tax records purposes a handwritten record is not enough though, you do need to keep the receipts as well as evidence of what you actually paid for. Your handwritten book would thus be an ideal way to cross reference the book entry against the physical receipt by simply numbering each line and writing that number of the receipt. The receipts can then be shoved in a shoe box and ignored (unless you get asked from them in a tax inspection at which pint your cross ref number will enable you to easily find the right one). Alternatively, as mentioned by Pennywise above, you can scan the paperwork and keep the image, that way you don't need to store the paper original and it can be binned

    if by "invoice" you mean the invoices you produce for your customers recording your own income then yes, they do have to be "kept". If you are not using software (and so cannot recreate the invoice to be printed by pressing a button) you will have to keep a hardcopy of each invoice you sent out, there is no alternative to that as it is a vital part of the record of how much you earned.
    Last edited by 00ec25; 21-08-2017 at 12:28 PM.
    • purpleroad
    • By purpleroad 18th Aug 17, 3:57 PM
    • 54 Posts
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    purpleroad
    I have a fancy software invoice joist for big jobs, but for little jobs I guess a blank, ruled carbonless triplicate book would work, wouldn't it? Write in date, customers name and job done- then write paid by cash or BACS at bottom. I guess I keep the top copy and give customer one of the copies. Not that they ever want it. I have been using a 26Ah in a tough plastic box I carry in an out of flat. Get another one and use 2.
    Last edited by purpleroad; 18-08-2017 at 4:08 PM.
    • TheTracker
    • By TheTracker 20th Aug 17, 9:27 AM
    • 1,123 Posts
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    TheTracker
    I keep no physical receipts for more than a few seconds. I use a phone app to snap a picture of my receipts (Xpenditure, others are available). Every few months over a cup of coffee I review and categorise and click 'send to accounting package' and 'save as pdf'. If you need to categorise against customer you can do this when you snap the pic. I upload email receipts to the same service.

    Somewhere in my loft I probably still have shoeboxes full of receipts from 2003. Welcome to 2017.
    • glennevis
    • By glennevis 21st Aug 17, 10:28 AM
    • 121 Posts
    • 86 Thanks
    glennevis
    As a sole trader you don't need triplicate paperwork or fancy software. A duplicate invoice/receipt book would do and a notebook as already discussed. And to answer your question, yes a big box to keep the paperwork in. You will need to keep paperwork for 6 years so get a few boxes.
    • TheTracker
    • By TheTracker 21st Aug 17, 2:22 PM
    • 1,123 Posts
    • 1,114 Thanks
    TheTracker
    You may not want 'fancy software', but you don't need the boxes. Take a photo of the receipts with your phone/camera and store the images in a couple of different places. Though glennevis might see this as 'fancy computer storage'.
    • Mupette
    • By Mupette 28th Aug 17, 1:15 PM
    • 4,228 Posts
    • 6,931 Thanks
    Mupette
    lovely bit of software and app is Wave.

    Scan all receipts in (always keep your receipts too)

    GNU
    Terry Pratchett
    ((((Ripples))))

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