Dressmaking and how to keep account?

Umm_jannah

Hi,

Im in need of some advice. Im a self employed asian dress maker and i work from home. I get paid cash for each outfit i make. I have recently started giving reciepts to my customers so i know how much i make each week. The thing is the cash i get i dont put it into an account i just spend it on weekly groceries, nursery fees day to day spend etc. I only work 4 hours max each day mon-fri only while the kids r at school/ nursery and make usually between £60-£90 each week. Am i going to get into trouble for not putting the money into an account?? Its a hassle coz i will need to get it out again anyway.
Shall i also get an notebook and write down what i make each week or us the reciept book enough for self assessment or if they need proof of income??

Thanks

laurel7172

When you say "make" £60-90 per week, is that before or after the fabric cost? Or does the customer supply their own fabric?

Umm_jannah

The customers usually give me their own fabric and they tell me what they want done.

Umm_jannah

The only things i buy are needles, threads, bobbins etc when i need to. These are usually from the market coz its cheaper

Savvy_Sue

AT the very least you should write everything down: atm you cannot prove that you are only taking £60-90 pw, and that could cause problems.

Are you (as a household) claiming any means-tested benefits, eg working tax credits, housing benefit, council tax benefit?

VfM4meplse

You are effectively running a small business, which is just what this country needs.

Whilst a bank account is not strictly necessary, receipts and a full audit trail are because your income needs to be declared - it cannot be seen as "pocket money". Cash-in-hand work is unsurprisingly seen to be suspicious as there is more potential for misappropriation, and also if income-related benefits are claimed. If you have been doing this work from before April 2011, I would suggest that you find an experienced business within the community to take you through the whole self-assesment process as returns for 2010/11 must be filed by Thursday.

Umm_jannah

I have only made an application for tax credit on friday.
So shall i get myself a note book and write everything down and continue giving reciept to my customers and when i buy needles and stuff ask the market man to write me reciepts.
I have registered as self employed i want to do this the right way and keep records etc if i need to prove my income and end of each year it will be easier to do my self assesment.

Savvy_Sue

Umm_jannah wrote: »

So shall i get myself a note book and write everything down and continue giving reciept to my customers and when i buy needles and stuff ask the market man to write me reciepts.

Yes, YES, YES!

Umm_jannah

Thank u everyone for your advice, really appreciate it. Hopefully when my girls are older this buissness might turn out to be something big who knows

MELLA_2

You definitely have a market for it, I wish you well xx

InsideInsurance

You will also need to have told HM Revenue & Customs that you are doing this small business, failure to do so results in a fine. At the end of the tax year you need to then complete a tax return to declare your incomings and outgoings and they will then calculate how much tax you need to pay (if anything).

Without keep a record of it it will be difficult to ensure that you complete the tax return accurately! Whilst there is no requirement to pay it into a bank account it is one way of keep track of everything.