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  • FIRST POST
    • purpleroad
    • By purpleroad 10th Jul 17, 1:43 PM
    • 37Posts
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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
    • 8,996 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
    • 37 Posts
    • 3 Thanks
    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
    • 8,996 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
    • 13,013 Posts
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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
    • 37 Posts
    • 3 Thanks
    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
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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
    • 37 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
    • 7,119 Posts
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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.
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