Self employed accounts

Sidekick_2

alwayspuzzled wrote: »

But there is no requirement for a self employed person to keep formal accounts, as long as you have correctly completed your self assesment forms and have reciepts for any expenses you have claimed you do not have to have any ledgers, profit and loss or other spreadsheets. So the CSA can only actually demand your SA as submitted to HMRC.

There is a requirement to keep records, which accounts are.
The CSA can ask for any information of a NRP income.

Sidekick_2

alwayspuzzled wrote: »

My point is though that not all self employed people CAN provide these accounts that they ask for. I am also NRPP and also self employed in the same trade as NRP and can tell you without a doubt 90% of the blokes I've worked on site with do not have accounts. They do not run a 'business' with accounts and paperwork just register with HMRC under the construction industry scheme (CIS) as self employed and hand an accountant a pile of payslips and reciepts once a yr and pay a couple of hundred quid to have their tax return completed for them.

If you are self employed you are a 'business' and if you are not you are employed.

The CIS is a tax scheme which allows the employer deduct a % of gross payment, it does not mean you are not a business.

I fully agree with you regarding their assumptions, even though I have supplied them with full details and figures for everything they asked about the tribunal service have still made up an extra assesable income of £140/week which simply doesn't exist.

I am disgusted that even the tribunal service can not understand basic financial affairs, as although we do not yet have the tribunal statement of reasons I can see from the figures that the tribunal judge thinks that a tax refund from 2 yrs prior to the tax year the assesment was based on counts as ongoing extra assesable income

When you get the Statement of Reasons appeal on these grounds. A tax refund is not income in the relevant year.

sweetd

bdt1 -we could be facing similar situation - your words describing the bitterness and twisted nature of the ex resonated with me, we have been together for 11 years and still get grief and the ex would always do whatever in her power to eak out extra pennies despite her remarrying and banking the profits of the ex marital home....... my partner NRP with whom I cohabit was contemplating moving out to prevent the CSA from having access to joint accounts or taking into account my situation, dicks me off that ex gets to see confidential information as a form of punishment for us

clearingout

if there is nothing to hide, why worry about letting them see the accounts?

And then I laugh and remember this is the CSA we're dealing with so someone on £0 a month ends up with a huge assessment because someone can't read the accounts properly....!

Seriously, I understand it's 'confidential' information but it's about supporting the children. Your partner would do well to just see it all as another hoop he has to jump through, rather than compare her standard of living with his and get annoyed and upset about it. Life goes on - he has a new life with you. Tell him to enjoy it and be glad he's the kind of self employed guy who's supporting his children. My self employed ex won't pay a penny.

KateBob

PreludeForTimeFeelers wrote: »

There are some differences between what the CSA will accept and what HMRC will accept - for example HMRC allow you to knock off money for depreciation, whereas the CSA don't. The HMRC also allow money for entertaining clients, and the CSA don't.

Actually HMRC disallow both depreciation and entertaining clients (but allow capital allowances and staff entertaining), just thought you should know.

dyl003

What happens if you have a very healthy personal bank account that is saved money from a source other than your business. Do they take that into account? Is it the more money in your account, the more they may take?

PreludeForTimeFeelers

dyl003 wrote: »

What happens if you have a very healthy personal bank account that is saved money from a source other than your business. Do they take that into account? Is it the more money in your account, the more they may take?

No, your savings aren't considered a form of income.

clearingout

depends on the source, surely? and isn't capital over £60k given a value for child maintenance purposes?