Getting ready for Mr Taxman

[adamroche144]

Hey everyone,

First year trading complete and now time to get the paperwork all in order, any hints or tips.
Any one got any templates for excell or how do you all work yours ?

 

[telectrix]

do everything in rough. then if it appears that you will have to pay tax. start over.

 

[Octopus]

Accountant, on line declaration, pay monies due next year.

 

[Tridentsystems]

Change your name to something Eastern European , makes you tax exempt and you may get a free house

 

[plugsandsparks]

I could not manage a year before doing the paperwork, i think the longest i have gone is 3 weeks but i keep a daily log in excel just where i worked, for whom, mileage, expenses, billable hours and parts used. If i did not do a daily log, i would be in a right mess with invoices, CT and whether i am driving myself into the ground

 

[adamroche144]

I could not manage a year before doing the paperwork, i think the longest i have gone is 3 weeks but i keep a daily log in excel just where i worked, for whom, mileage, expenses, billable hours and parts used. If i did not do a daily log, i would be in a right mess with invoices, CT and whether i am driving myself into the ground

i keep a log every week and organise invoices etc,

just got no idea where to start regarding getting them ready to give to my accountant,

 

[Octopus]

i keep a log every week and organise invoices etc,

just got no idea where to start regarding getting them ready to give to my accountant,

Have 2 files, each seperated by months, in 1 book keep all your business expenses, and in the other keep all your customer expenses.

 

[Geordie Spark]

Keep two sets of accounts ...... one for you and one for them .............

Claim for everything, newspapers, magazines, shoes, socks & all clothing. Receipts from the pub or restaurant (you were entertaining clients). Phone bills - landline & mobile and your internet too.

Bus and train tickets - when you went to those "entertaining clients" do's, you didn't want to drink & drive.

Paper & ink for your printer - and envelops & postage stamps.

The carpet for the child's bedroom - that's the room you use as an office isn't it? Don't forget the painter & decorator's bills ..... your place of business needs to look smart.

The bill for the window cleaner, and the soap and washing stuff that your lass buys. The office needs cleaning and so do your work clothes.

Some of the food shopping bill too - that's "sustenance" - you need to eat while you're at work.

Just open your mind and be creative .... you'll soon get the hang of it!!

 

[Geordie Spark]

Just a further note to my post #8

My business partner tried to claim the £6k fitted kitchen in his house was the works canteen ......... THAT one didn't work, but most of our other claims did.

 

[Geordie Spark]

Have 2 files, each seperated by months, in 1 book keep all your business expenses, and in the other keep all your customer expenses.

You forgot the Fiddle Fund file.

My accountant now long departed was an ex- Inland Revenue man who one day decided to "go native" and help hard-working folks in the relentless battle against the Tax Man.

He often told me: " Fiddle as much as you want, and tell as many lies as you like, but ALWAYS know the true position, because it's NOT down to The Revenue to prove what they assess you on is what you owe - it's up to YOU to prove that you don't!!"

That was why we kept the "other" set of books.

 

[oldtimer]

Hey everyone,

First year trading complete and now time to get the paperwork all in order, any hints or tips.
Any one got any templates for excell or how do you all work yours ?

WHAT !!! time to get the paperwork sorted out after you completed a full year are you kidding please don't tell me you are sitting with a pile of receipts at your feet and if this is the case then an accountant will have field day with you.

First off all you need to be organised ie doing your accounts daily yes daily and keeping all your records ie receipts in a chronological way via the way of a folder do that and you will have a chance if not HMRC will think of a number

 

[Essexboy7]

Dont register with them as a spark but as a general building labourer.That way you can submit earnings of ten grand a year and they wont think too much of it

 

[oldtimer]

Dont register with them as a spark but as a general building labourer.That way you can submit earnings of ten grand a year and they wont think too much of it

Well I thought I heard all the daft ideas but this one takes the biscuit when you register they ask you if you are a sole trader and then ask what is the business name so fine call yourself a builder but when you start a website plus business cards etc and all they have to do is google you then you get hauled in

 

[oldtimer]

Also OP do you realise that your were meant to register self employment status with HMRC within 3 months of starting up so if not me thinks it is an automatic fine

 

[Octopus]

Also OP do you realise that your were meant to register self employment status with HMRC within 3 months of starting up so if not me thinks it is an automatic fine

Wonder if he's been paying his class 2 NIC??

 

[oldtimer]

Wonder if he's been paying his class 2 NIC??

Na bang goes is state pension Ahh buts thats another story

 

[adamroche144]

Also OP do you realise that your were meant to register self employment status with HMRC within 3 months of starting up so if not me thinks it is an automatic fine

Yes thats all been registered, Every thing is organised and more or less in order, just wondering how to lay it all out to give to the accountant really, eg income in pile, out going pile, costs, bla bla bla

 

[Octopus]

Yes thats all been registered, Every thing is organised and more or less in order, just wondering how to lay it all out to give to the accountant really, eg income in pile, out going pile, costs, bla bla bla

Have you read post #7?

 

[Essexboy7]

Well I thought I heard all the daft ideas but this one takes the biscuit when you register they ask you if you are a sole trader and then ask what is the business name so fine call yourself a builder but when you start a website plus business cards etc and all they have to do is google you then you get hauled in

I know a fair few sparks who do it.If you are just registering for CIS you are not going to have a website or be giving out business cards.If you are only submitting low earnings and then one year a larger amount it just looks like you have had a good year.If you are regularly submitting 35 grand a year and then have a bad year and only submit twenty grand that is more likely to get you hauled in.The taxman is not interested in stories of recession/rates dropping/lack of work or foreigners taking all the work.If he see a sizeable drop in your declared income he thinks you are trying to pull a fast one.I know that from my own experience.2 years ago i was called in for a 2 day grilling and they didnt believe that a tradesman living in the london area couldnt get work with all the olympics taking place

 

[oldtimer]

And this being an open forum do you think tax man cannot work a mouse ? anybody doing a dodge think they are unique but HMRC have seen it all before like the Chinese carry out who played the one for you one for me trick sounded good then got a visit where the taxman said so you sold XXXX meals last year yes said the reply well how com you bought XXXX x2 containers then ?

 

[guest119]

Start with a book/jotter for outgoing money, weekly with a line drawn and total each month.
Ditto incoming.
Speak to an accountant about haviing a short first year in order to line up your business year with the tax year, ie April to April, saves a lot of heartache.