Keeping Records

fatiguejras
fatiguejras Posts: 3 Newbie
edited 21 June 2018 at 9:08AM in Cutting tax
So recently I have started self employment as a food trader. My ever-changing earnings are given to me in cash (always), which then I put on my bank account. :eek:

I Do not deal with invoices and my sole expenses are train tickets (I guess). This is the first year of doing this so by the end of January 31st I will have to send my first self assesment.

In that case how do I proceed with keeping records so by the end of this year my income will be well documented? :beer:

Also, I estimate my income for this tax year as something around 14-15k which is not a lot.
Still - having an accountant (as I was told) helps tremendously with credit check for the tenancy purposes. Is that true?

Thank you!

Comments

  • Pennywise
    Pennywise Posts: 13,468
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    Surely if you're a "food trader" you'll also have payments for the food you're buying to sell, so you'll need receipts/invoices for those.

    What about other costs, such as phone calls?

    Re sales, you really should have some kind of book or spreadsheet showing the monies received each day. HMRC will find it hard to believe that every last penny you receive in sales is banked, as in reality, you'll spend some of it, i.e. a coffee at the station, a bus fare, a bar of chocolate, etc., Having a proper record of sales will be a small step towards "proving" income to HMRC and also deal with the inevitable timing differences between the date you receive the cash and the date it is shown on the bank statement, which could pose an issue if it crosses over the year end.

    Re credit checks, the only way an accountant will help is to provide the landlord/agent with a confirmation of your earnings statement/reference which may or may not help, as some landlords/agents prefer sight of your tax return figures from HMRC. In a case like yours when there is no independent proof of your earnings, the accountant will only be able to confirm the figures submitted to HMRC anyway as it's impossible for anyone else, other than you, to confirm your sales figures are accurate.
  • fatiguejras
    fatiguejras Posts: 3 Newbie
    edited 21 June 2018 at 9:29AM
    Thank you for your answer.

    Here is the thing.I work mainly for my brother. It's him who pays for the food, fuel, stall pitches etc. This is far from having a permanent position as we only trade during weekends and not necesarely all of them. Sometimes only once or twice a month. In that case maybe my self assesment should look different? Or perhaps bank transfers from my brother would be the best option?
  • sheramber
    sheramber Posts: 18,869
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    Sounds like you are an employee.
  • 00ec25
    00ec25 Posts: 9,123
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    Thank you for your answer.

    Here is the thing.I work mainly for my brother. It's him who pays for the food, fuel, stall pitches etc. This is far from having a permanent position as we only trade during weekends and not necesarely all of them. Sometimes only once or twice a month. In that case maybe my self assesment should look different? Or perhaps bank transfers from my brother would be the best option?
    the number of times you "trade" is irrelevant

    there are 2 possibilities:
    either
    a) you are in Partnership with your brother - in which case you and he need advice urgently because you are way out of your depth given what you've said so far

    or
    b) you are an employee of your brother . In which case your brother is way out of his depth and needs the advice

    you are not a sole trader in your own right as the only thing you are "trading" is your labour. You cannot claim an income out of nowhere as it is not you who is buying the product you sell. All you are selling is your time - to your brother, or to the partnership with him.
  • It seems you are right. I will have to look into the matter.

    Thanks for your time.
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