Self employment records

Pip123

Hi,
My mother has just started as a self employed cleaner. She works by herself and doesn't employ anyone. She has registered for NI contributions but we are unsure of the records that we should be keeping?

We have this book to keep track..

http://www.amazon.co.uk/Small-Business-Accounts-yellow-Version/dp/0906555221/ref=sr_1_1?ie=UTF8&s=books&qid=1288090734&sr=8-1

and complete it weekly showing how much she is getting paid (same amount every week!) and also showing receipts for profit and losses (ie, petrol etc) (-should NI contributions be included as a loss?!)

However as she is paid in cash/direct debit do we need a business account to back up payments or will this book be considered enough?

We are keeping every receipt that incurs a cost but are just unsure of whether we are keeping the correct records and in the right way?

Please feel free to direct me elsewhere!
Thanks

Gertie_Walker

NI contributions are a personal expense and should not be included in her business accounts.
Its good practice to keep a separate business account, but not essential. She really needs to either issue an invoice to her clients and keep copies annotated with the date of payment, or else issue receipts (a numbered duplicate book would do). This way, all receipts can be double checked.
She needs to keep receipts for all her other purchases, eg materials, protective clothing, equipment, etc
As she seems to be including all her mortoring costs, she needs to keep a record of her business miles so that this proportion can be added back on her self assessment.