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Business Expenses - Keeping a record of expensable monthly bills
Katie_Scln
Posts: 1 Newbie
Hello,
I'm new to the self-employment world (recently registered as Sole Trader) and am currently trying to practice good habits in regards to bookkeeping from the get-go to avoid a meltdown come January.
I'd like to know how I keep a record my monthly Website Hosting fee so I can expense it for my tax returns.
1-I'm charged the same bill, of the same amount monthly. Do I therefore have to keep each individual bill every time I'm charged?
2-I'm emailed the bill each month as a PDF invoice - Are invoices valid proof or do I need a receipt? (I've heard invoices aren't valid records for expenses as technically invoices are issued BEFORE payment)
Thankyou for your help
I'm new to the self-employment world (recently registered as Sole Trader) and am currently trying to practice good habits in regards to bookkeeping from the get-go to avoid a meltdown come January.
I'd like to know how I keep a record my monthly Website Hosting fee so I can expense it for my tax returns.
1-I'm charged the same bill, of the same amount monthly. Do I therefore have to keep each individual bill every time I'm charged?
2-I'm emailed the bill each month as a PDF invoice - Are invoices valid proof or do I need a receipt? (I've heard invoices aren't valid records for expenses as technically invoices are issued BEFORE payment)
Thankyou for your help
0
Comments
-
1. Yes.
2. If you get an invoice and have some form of proof that you have paid, such as a bank statement, then there is no need for a receipt. If you paid by cash, then getting a receipt would be advisable.
1
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