Self employed tax help...

[greenscrump]

Hi all

my OH has been self employed - sole trader- since August.  We have a growing collection of receipts and invoices and would really appreciate some advice re books/web sites/ software and so on to help us with the inevtiable tax return

many thanks

[greenscrump]

[springbok]

I am qualified in that area.... I could be of help.

[pg]

When I first became self-employed I found the booklets given out by all of the High Street Banks were very helpful and well-written. Try a quick jaunt along your High Street, pop in and say you're interested in starting a small business and having a business bank account (you don't actually have to have one, I don't). Retreat quickly with armfuls of free literature. 

After amassing all of this info and doing the real thing for a couple of years I ran Starting Your Own Business courses through my local Adult Education centre. I no longer do this (I turned to running wine courses, much more fun!) but you may find some on in your local area.

Last bit of advice, don't read the Inland Revenue advice webpages until you've feel you've got a basic grasp of things. Their level of detail can be far too baffling if all you want is a quick dip.

[Shirley]

My husband was self-employed (now retired) and not being account minded found a local chappy who would do the accounts for him.  This chap was less expensive that an accountancy firm, but he did know what was allowed against tax, heating of a room, percentage of car mileage for business,etc.  We did not always understand the accounts he produced each year, but the tax people where happy and did not query anything.

[Pesky Wabbit]

I found that by producing two spreadsheets (one of in's and one of out's), I could cut my accountants bill in half as most of the data entry was already done.

Easy enough, just go through the bank statements, just time consuming, but its better than having to pay someone to do it at several squillion quid an hour. It also makes you think about/realise where all you profits are going !

In's - break down by month and by source. Note the date of each item should be the date received (banked), not the invoiced one.

Out's breakdown by salaries (inc tax & ni),
                                 professional costs (insurance, membership fees etc),
                                 travel costs(milage, petrol),
                                 running costs of office& equipment(rental, heating, phone, cleaner etc),
                                 purchases of equipment (ie computer, van, furniture),
                                 purchases of consumerables (paper, ink cartridges, stamps),
                                 and 'others'

[manicscousers]

that's how I used to do our accounts, just remember to keep all your receipts and make sure your oh doesn't put them in a pocket of a pair of trousers that you wash  ;D

[greenscrump]

thankyou all so much for the advice, I shall trawl the local banks for info and try making up the the spreadsheets  ;D

[northener]

You would be aswell getting yourself an accountant. Hes just charged me £173 for the year. I keep all my reciepts monthly in large envelopes with months marked on front. All work thats taxable just keep invoices for them. Then end of year you take him these and he works it all out the sends it off to inland revenue. £173 is nothing for the amount he saves me. Try getting one recommended.

[oggiesnr]

I am also self-employed.

Keep ALL your receipts and a note of ALL your income.  Accountants charge by the hour so the more work you do, the less they do and the less the bill.   If you sort and list your receipts by type (travel, stock etc) that helps.  Likewise make sure all your paying in  books and cheque books are reconciled.

When choosing an accountant talk to people you know and look for one who is used to small businesses and doesn't have a big, flashy office (paid for out of client's bills)

Steve

[kenkew]

My ex works for a well known A/c's company and from the tales she told me my advice is to look for a qualified one-person accountant!
I used to be self-employed and had the latter to do my accounts. I did quite a lot of 'keeping things tidy' which helped. That chap not only saved me money, he became a friend.
Don't try doing it alone unless your very, very sure of what that entails.
Ken.

[Bill Door]

As a suggestion get a Simplex D book.  Read the instructions and balance the book each week.

Number each receipt and each invoice you issue and make sure they are in two different sequences.  I would suggest stating sales invoices off at 5000 and expense receipts at 1. ( the 5000 makes it look as if you have been going for a long time when you let the customer have their copy)

Bundle each up and total them.  Do it regularly to cut down the work.  As someone has said cultivate a good accountant and listen to what he says he wants.

Finally avoid a black plastic bag for storing all the paperwork.  care of your records shows care of your business.

Good luck with the records and the business.

Bill

[greenscrump]

thanks all  :)    I think we may be erring on the side of some professional help as neither of us is good at maffs  ;D