book keeping question/business bank account needed?

[allieXayrshire]

ive been self employed for over a year now and my first tax return will be due by jan so have been maing sure everything is up to date with my books today. I have a spreadsheet that i have recorded all my takings and expenses in week to week and have kept all reciepts but i dont use a business bank account, just my personal one as im just renting a room its just a small business. so... i wondered if HMRC will want to see my personal bank account statements as this wont show everything ive earned on it as not everything i earn gets paid in to it and i buy some products etc in cash so i have reciepts for these but they wont show on my statement if u get me, will my spreadsheet and reciepts be enough for me to fill in my tax return and keep records for HMRC? thanks

 

[Silver Fern]

Hi there,
Yes, so long as you can show your income and outgoings then that will be fine. If you haven't already done so I strongly recommend going on one of the free courses that your local IR office offer on completing tax returns as they are a mine of information and advice on what you can and can't claim for.
hope this helps
Natalya

 

[jes]

Hi,

HMRC will only want to see your bank statements if you are selected for an investigation. Should this happen HMRC will want an explanation of every transaction from that account, which is why having a separate, business account is so preferable.

HMRC will expect to see cash payments, so as long as these are recorded nice and clearly, everything will be fine. The same goes for paying for things with cash, as long as the receipt says "cash" then everything will be OK

HTH
jes