what records to keep for tax returns?!!

Animal_lover

Hi there,

I am starting up a petsitting business as a sole trader, I have been reading that you should keep invoices and receipts to show HMRC if requested, but as a petsitter I wouldn't really give out invoices/ receipts? Do I have to do this? Any help would be much appreciated as to what records I should keep - at the moment my first 2 bookings I have had I have put on spreadsheet form stating what they owe me and how they paid? Would this be ok as I could just be making it up or hiding something?

Any help is MUCH appreciated thanks!!!

fengirl_2

I dont understand why you wouldnt give out invoices or receipts. As a customer I would at least expect a receipt for money I had paid to you and surely an invoice looks more professional?
As you rightly point out, just recording figures on a spreadsheet proves nothing, especially if people are paying in cash and you are not banking it.
For your own peace of mind I would institute a system which at least provides a receipt from a numbered duplicate book.

Animal_lover

Thank you - that does help!

tyllwyd

When I started out as self-employed, I went to an Inland Revenue tax workshop, and one of the things the person running the workshop mentioned was that she would prefer to see a handwritten account book (because computer records were too easy to change). I don't know if that is still true, but apart from your bank records & receipts, it couldn't hurt to keep a handwritten diary of what pets you are sitting and when etc, and then if there was a question that would be something you could point to as a back up to your records.

Animal_lover

Thank you very much - I am waiting to hear back about attending one of these workshops - it sounds like I will learn a lot from it! Thanks again

PlutoinCapricorn

Hello AL. I do hope that you get a lot of customers!

You did use the word 'business', which suggests that you hope to do more than just come to unofficial arrangements with your family, friends and neighbours.

If this is true, then you need to investigate various aspects and take the legalities, record keeping, paperwork and suggested procedures seriously. If you register as a sole trader, you will need to fill in a tax form each year, and it is a good idea to be prepared for an investigation. In return for being able to offset your expenses against your income, you are expected to keep good records and be able to back them up if required. If you buy something to use in your business, ensure that you get a receipt. Invoicing your customers makes everything official. You may need to consider public liability insurance.

www.businesslink.gov.uk is a good place to start.