Record keeping in addition to a bank business a/c

zygurat789

A1P wrote: »

My turnover is below the VAT threshold.I appreciate there will be significant paperwork implications if/when this occurs.
I pay a lump sum to my personal a/c at the same bank every 4/6 weeks and these are identified on my bank statement.From this year I am going to do it via standing order as the business will now stand it.
I don't have the computer skills to create a programme.I have avoided commercial ones not solely on cost grounds but because they are 2 complex for my needs.

Question 1 had nothing to do with VAT, we are dealing with income tax here.
Your answer to question 2 tells me you are heading for trouble.
If you are self employed you cannot receive wages from that source to use words like this will mislead people and could bring most of the weight of HMRC down upon you. It could also mean that you misrepresent your business to, say, your bank when asking for a loan.
I would strongly advise you to learn the word drawings and use it for ALL items which are paid to you or bought for you.

You don't need to create a program, excel is a spreadsheet, the back of an electronic envelope.
You could probably find uses for it as a plumber after all you are printing items off your phone. These sorts of programs are in everyday use by lots of people.

A1P

zygurat789 wrote: »

Question 1 had nothing to do with VAT, we are dealing with income tax here.
Your answer to question 2 tells me you are heading for trouble.
If you are self employed you cannot receive wages from that source to use words like this will mislead people and could bring most of the weight of HMRC down upon you. It could also mean that you misrepresent your business to, say, your bank when asking for a loan.
I would strongly advise you to learn the word drawings and use it for ALL items which are paid to you or bought for you.

You don't need to create a program, excel is a spreadsheet, the back of an electronic envelope.
You could probably find uses for it as a plumber after all you are printing items off your phone. These sorts of programs are in everyday use by lots of people.

I am receiving an education here.Thanks to all concerned.Like all good educations I have received a words of encouragement and some relatively gentle correction.
Regarding amounts drawn from the business,I will refer to them as Drawings as the HMRC use the term.I am a sole trader.When I have referred to this before I mean lump sums have been transferred between my business and personal a/c's on a relatively regular business.Now that my earnings are more stable I shall use a monthly standing order.For the purpose of the 3 vital Tax Return figures,I leave these drawings in my gross earnings figure so that in effect I will be taxed if my profit exceeds my tax allowance.
As regards the 70k earnings figure.Apologies for mistake in relating it to VAT.I know the VAT registration is in the 70K's and I know the implications.I am assuming that I may be reaching a possible higher tax bracket if my gross earnings start to get to this high level.However for a lot of tradesman this figure includes a lot of 'turnover' if you SUPPLY and fit.eg I might receive £3000 for a job but £1700 of it might be going to the merchant.I am aware of the earnings/turnover figure being important for the VAT threshold.

zygurat789

A1P wrote: »

I am receiving an education here.Thanks to all concerned.Like all good educations I have received a words of encouragement and some relatively gentle correction.
Regarding amounts drawn from the business,I will refer to them as Drawings as the HMRC use the term.I am a sole trader.When I have referred to this before I mean lump sums have been transferred between my business and personal a/c's on a relatively regular business.Now that my earnings are more stable I shall use a monthly standing order.For the purpose of the 3 vital Tax Return figures,I leave these drawings in my gross earnings figure so that in effect I will be taxed if my profit exceeds my tax allowance.
As regards the 70k earnings figure.Apologies for mistake in relating it to VAT.I know the VAT registration is in the 70K's and I know the implications.I am assuming that I may be reaching a possible higher tax bracket if my gross earnings start to get to this high level.However for a lot of tradesman this figure includes a lot of 'turnover' if you SUPPLY and fit.eg I might receive £3000 for a job but £1700 of it might be going to the merchant.I am aware of the earnings/turnover figure being important for the VAT threshold.

I'm a bit confused as to the turn of phrase, drawings are not in gross earnings. Have you ever deducted what you used to call wages before arriving at your taxable income?
The £70K (my approximation) is £77K the level of turnover below which you may use 3 lines. Turnover is all the total of all the sales you make, the gross figure, the largest figure it could be. I was confused by your £3000, £1700 example. £3000 is the turnover and, yes, it is very important fot VAT your must know your turnover for the last 12 months up to the end of last month if you are anywhere near the VAT registration threshold.