Self employment...keeping records

fgh001

I also don't have to do anyhting with VAT?

Savvy_Sue

fgh001 wrote: »

Thankyou. Yes he pays me promptly every week I do work for him.

Great, it may still be worth putting something on your invoices about payment within 2 weeks, ready for when you work for others ...

fgh001 wrote: »

Also, as Ive registered now 2016/2017 does that mean I won't have to do a tax return until January 2018???

Correct, but you don't have to wait until then to do it, you can do it once the new tax year starts in April. And it is definitely worth doing it sooner rather than later because you're bound to have questions, which may take time to answer.

Start keeping good records now: what you invoice, what you're paid, any expenses (mileage? tools?) that you could set against your profit.

fgh001 wrote: »

I also don't have to do anyhting with VAT?

Unlikely, there's a threshold you're highly unlikely to exceed at this stage.

fgh001

Thankyou! Sorry for all the questions.
I have made up an invoice with my name and address, customers name and
-week ending date
-services
-hours
-amount

Also an invoice number.....can my invoice number be anything??

Savvy_Sue

fgh001 wrote: »

Also an invoice number.....can my invoice number be anything??

Yes, although it makes a lot of sense to do it sequentially.

If you're not expecting to raise hundreds of invoices each year then starting at 1 and going on from there is fine. You can always change in the future to putting the year in front, eg 2017/01. But honestly, at this stage, KISS (Keep It Simple, Stupid). Not suggesting you are stupid, it's something I often say to myself!

fgh001

I like simple!
Another question ( sorry!)
With me putting the money ive earned into a bank account...the same as which i pay eveything with (food etc) is there a problem with this?? As in i may have a cheque for birthday and I will cash it in the same account..
Also withdrawing money from said account for daily things like new shoes (not business related) am i ok doing this from the same account im putting my earnings into??

Thankyou

Savvy_Sue

I'd recommend getting a separate account. If you open a business account you'll probably be charged for it at some point, but at this stage another personal account shouldn't be an issue. It's just simpler - for example all DH's self-employment bits go into one of our accounts, so when he came to do his tax return I could quickly see what payments there had been.

fgh001

Okay..ive already put cheques into my account though.
Im just confused as to whether if i keep the same account put all my work money into it (cheques or cash) i can spend it freely?

Savvy_Sue

As long as you keep good records, it doesn't matter where you put the money. However I've always found trying to keep 'business' expenses separate from personal ones the easiest way to go. For example, because we have more than one credit card, we used to use one of them for expenses to be reclaimed from DH's employer. Saved trying to sort through credit card chits to work out which were work and which weren't: if it was on THAT credit card, it should be work.