Tax Returns and invoices

Nick1109

I'm in the process of starting a small ebay business along side my day job.

I was wondering about Tax returns.

When tax returns are submitted do you have to submit all invoices for everything? I will be monitoring purchases and sales through paypal. Will it suffice to provide my paypal invoices detailing payments in and out for tax returns or do I need detailed invoices showing what my money has been spent on (eg-stock descriptions).

Or have a got it wrong and tax returns require just an amount of purchases against expenses and then I get taxed on profits?

Any help would be great

Nick

Premier_2

You don't need to provide any proof with your tax return

You only need the proof if asked later to justify it.

Invoices should detail what they are for usually (only businesses like shops selling lots of small value items can get away with no description, such as old fashioned til receipts - but these are often detailed nowadays too)

Nick1109

Ok thanks.

I only ask as I have a problem with one of my suppliers sending me a paper invoice for stock for x amount and the invoice payment on my paypal to them is more than this.

But obviously I do have a record of whats gone in and come out so I should be ok.

Nick

Premier_2

If you have a compliant invoice from the supplier through Paypal for the goods, I think that should suffice.

But if you've just sent a payment without invoice from the supplier, that will not suffice.
(It would be like giving the taxman your cheque stubs; he want's the invoices, not the details of the money you spent as that could cover a number of things)