Self employed question/paying in book

loverington

I have just had a look on hmrc on what you are required to keep as records, and it says paying in slips, I dont have a paying in book, just use paying in slips from the bank, I bank with hsbc on a personal current account as my business isn't earning a great deal yet and didnt want to start opening business accounts just yet, would bank statements be enough or can i request a paying in book for a personal account?

Hammyman

You will get or can download statements. They'll suffice however its made complicated by using a personal account for business. Do your bank know you are doing this?

orangeslimes

The main thing is that when you look at your bank statements you know where all the money you pay in comes from - i.e. you can match the items to specific invoices.
This is especially important if you are using your personal account so that if you pay in personal money you know that it is a birthday present from your aunt or whatever, and not sales.

Having a properly filled in pay in book is one way of keeping a record of this, but you can keep a record in other ways.
(You could also get receipt slips each time and keep them- making a note on them of what the money you are paying in is)

PlutoinCapricorn

Provided that you only have a few payments each month and do not deposit in actual cash, there is no problem with using a personal account for business purposes. The banks say you shouldn't do this, but it depends on the volume of transactions and the type of business. As a consultant, my personal account looks much the same as it would if I had two part time jobs.

I pay in my consultancy cheques via a machine, which produces a receipt with a photocopy of the paying in slip and the cheque. I write the invoice number on the slip before putting it through. The paying in slips come from my cheque book.

These records are needed in case HMRC have any enquiries or want to perform an investigation.

loverington

Great, thank you. at the minute I only pay in 3 cheques a month, hsbc did ask if I wanted a business account but as its so small at the moment it doesnt seem worth it really, eventually if (fingers crossed) it becomes a full time thing I will open a business account or at least another current account that I could keep seperate, I have just been reading through what documents to keep and I hope I have them all now? I have a cash book with money in and money out, I keep all receipts for expenses and all invoices to and from customers, and bank statements, is that everything now?

chuckley

cheaper to get them to send the statements rather than printing...