the lost receipt!!

roxylock

Hi, yes, I pay NI monthly direct debit, and I earn around £150 a week and only pay myself £90.
I do understand most things, I do invoices for everything, I write everything down, incomings and outgoing etc.
I just like to double check things to make sure I'm going it all right.

Thanks
Roxy

Notmyrealname

roxylock wrote: »

So I will write myself a receipt for the £30.

No, you cannot do that. HMRC won't accept it.

So by claiming it back, do you mean using my own personal money to pay got fuel, keeping some receipts and a record of how many miles I have done.

You need to keep a record of each journey done. You don't keep any receipts. You calculate the cost of each journey at 45p per mile for the first 10,000 miles you claim for per year then 20p per mile after that. This then goes in your books as an expense. It is easier to keep a separate spreadsheet for the mileage.

But I know this will seem a stupid question, how do I receive that back? Do I pay myself that at the end of the year?

No. You offset it against your income as a business expense the same you would do if you put in a petrol receipt. You don't get money back but reduce your tax bill.

I know i sound dumb, but I'm pretty much doing this on my own, so any advice would be great.

Thanks
Roxane

I strongly suggest you get yourself on a basic book-keeping course before you get yourself into all kinds of mess and end up either paying too much tax or not enough.

Alternatively find a good book-keeper who can do it for you. A friend of mine is excellent and charges under £20 an hour. If you keep receipts and invoices in order, it doesn't cost much at all and its yet another expense you can claim.

Notmyrealname

roxylock wrote: »

Hi, yes, I pay NI monthly direct debit, and I earn around £150 a week and only pay myself £90.
I do understand most things, I do invoices for everything, I write everything down, incomings and outgoing etc.
I just like to double check things to make sure I'm going it all right.

Thanks
Roxy

Are you aware that as a sole trader your income is actually the business profits, not the £90 you pay yourself? Therefore if you are claiming tax credits or any other income calculated benefit the income you need to be declaring is the profit.