Sole Trader and cash sales

FloFlo

What records of cash sales would I need to keep for cash sales alongside ebay sales? Some of the cash sales would be from car boots/markets/facebook pages. Would I need a record of every item or just a total for each week of sales?

Thanks

phill99

You just need a total amount for sales. Can you imagine if tesco had to list every item they sell for tax purposes?

FloFlo

phill99 wrote: »

You just need a total amount for sales. Can you imagine if tesco had to list every item they sell for tax purposes?

Thanks, so just my sales records from ebay and a total weekly/monthly amount for cash sales.

zygurat789

phill99 wrote: »

You just need a total amount for sales. Can you imagine if tesco had to list every item they sell for tax purposes?

Surely they do just that, they have a copy of the till roll and every shop that has a till should also keep their copy of the till rolls as part of their books of account.
After all your books are your defence against HMRC.

FloFlo

zygurat789 wrote: »

Surely they do just that, they have a copy of the till roll and every shop that has a till should also keep their copy of the till rolls as part of their books of account.
After all your books are your defence against HMRC.

Market stall etc, keep a copy of every sale?

PasturesNew

Pre computers (and now still), traders always kept a "Cash Book" - it even had the words written on the front.

You just need to record each transaction, one line/item. Or, if appropriate, a summary. e.g. if you bought, wholesale, 100 pairs of skates and took them to the car boot sale....at the end you might count how many are left in the box (30 pairs left) and write one line to say how many pairs you sold, "Sold: 70 pairs of skates".

Then, each day/week (as appropriate), total up the cash sales, count your cash, balance that with what you pay into the bank or put into petty cash.

zygurat789

FloFlo wrote: »

Market stall etc, keep a copy of every sale?

Now do you see why HMRC are always hounding market traders, they have a very poor defence.

paddyrg

I'd suggest it's prudent to keep track, no matter how, so you have some evidence that you're not just making numbers up as you go along. Cash book is fine, by all means aggregate it a little 'various old clothes £124, toys £65' on a daily basis, then for any large value items (eg over £100) record them separately. It'll help you keep track in a year's time of which lines were the best to carry, but also show HMRC that you're keeping consistent records. Maybe not world-class itemised ones, but at least consistent and any as backup if they challenge you.

And it's always that way round - you have to defend yourself, not them having to prove you're wrong!

Pennywise

Your "books" are your defence against HMRC challenge and should be as detailed as practically possible. If your market stall is selling hundreds of second hand books for 50p each or Mars Bars, then it's clearly impractical to record every single sale, but if your market stall is selling framed pictures at £50 a time, one or two per day, then it's clearly possible and sensible to record each sale. However, at the end of each day, you need totals of your takings, showing the total received, then balanced out against any payments out, such as buying more stock, paying stall rent, money drawn for your personal use, leaving the balance to be banked. That's the important bit, the balancing/reconciliation of the cash in and cash out - that's what the tax inspectors look for and what they'll hammer you for if you don't have it.

cinderfella

The stationery book you need is called a Simplex Book.
Cash differences are always adjusted to sales should there be no explanation for a shortage of cash. That is by your accountant, should you need one.

antrobus

cinderfella wrote: »

The stationery book you need is called a Simplex Book.
Cash differences are always adjusted to sales should there be no explanation for a shortage of cash. That is by your accountant, should you need one.

A Simplex Book! Please God no, not a Simplex Book!

Seriously, Simplex Books are wonderful in theory, if you complete the whole thing properly. Unfortunately, nobody every does that. The damn things are a nightmare.:)