Help with Tax Return please

[Nila]

Hi everyone,
I'm doing my tax return at the moment but there are some things I'm not sure about and I appreciate if you can help.

Do we need to keep our appointment books as records?! I mean how to prove how much you have earned? I have made an excel sheet and put all the details of how many clients I had and how much I made every week. Is it enough as records?

There is something on HMRC website as 'mileage records' and travel expenses. Is it only for mobile beauticians?

 

[laurakate]

Ive been told to keep proof of everything such as receipts and appointment books imcase they wanted to enquire further but that they ultimately want a figure of what went in and what went out. I am hoping this is correct anyway.

Isn't it a bit early to be doing your tax return now? The accountants I've spoke to said they don't need anything from me until April if/when I choose to go with them.

I don't have all the answers so will watch this thread with interest

 

[lwoody]

Hi, you need to keep your appointment books and all business receipts for the past 5 or 6 years, have you got a accountant ? They help you with all your books )

 

[Nila]

Hi, thanks for your replies.
I don't have an accountant I'm doing it myself and the deadline for sending it online is 31st Jan. I have been quite organized this year and don't want to leave it till last minute like I did last year. It was a nightmare!!
About keeping appointment diaries, what if we had an online booking system? then what to do? besides many small buisnesses or for example brow bars don't even have app books. They don't keep records of clients. How does that work then? xx

 

[hazeleyes]

Watching this one with interest to as I intend to set up myself with hmrc soon too

 

[MrsHBeauty]

Online filing deadline is 31st January 2014 for tax year 2012-2013.

Those who started business after April 5th 2013 (and before 5th April 2014) will need to file their tax return by 31st January 2015.

It can be filed anytime from April but lots of people leave it until nearer the deadline (like me - my books are in the car and I've been meaning to drop them to the accountant!)


Jemima

 

[laurakate]

Online filing deadline is 31st January 2014 for tax year 2012-2013.

Those who started business after April 5th 2013 (and before 5th April 2014) will need to file their tax return by 31st January 2015.

It can be filed anytime from April but lots of people leave it until nearer the deadline (like me - my books are in the car and I've been meaning to drop them to the accountant!)


Jemima

Reading this makes me think that an accountant is probably the way forward for me...they said just to give them all info etc related to what goes in and out in April and to leave the rest to them.

So if I understand what you're saying correctly, the earliest someone can do their tax return is April at the end of the tax year but the January (as in 9 months later) is the absolute latest that it can be left until? I guess what those adverts on the tele are about this time of year? The one where they say "tax doesn't have to be taxing" lol!

 

[virtues2011]

It can be a little boggling - be aware though, your funds that have been paid into the bank via cash or credit/debit card must match your appointment bookings! You will be asked many questions if your appointments are far greater than your banking!

 

[laurakate]

It can be a little boggling - be aware though, your funds that have been paid into the bank via cash or credit/debit card must match your appointment bookings! You will be asked many questions if your appointments are far greater than your banking!

I was told that it's not crucial that all cash has to be physically put it in bank if I didn't fancy the trip down there but I am going to do it that way because I think it will really help me keep track of things.

 

[facelashbrow]

This is my first year self employed and I deal in cash as my clients pay in cash and I tend to spend it in cash. Ive only worked part time alongside other work and then college so it's not huge amounts of money. When I do a tax return what kind of proof do I need?

My hubby was self employed for 6 months and he was just paid into his account for the work he did but that's the only record, no other paperwork. What else will he be asked for?

Sent from my GT-I9505 using Tapatalk 2

 

[Nila]

Has anyone ever been checked by them??? so we know what they have asked for?
or these are all he said she said?

By the way does anybody know how to keep records of computer bookings?

 

[DONSLJ]

Oh glad I saw this I don't alway bank my earnings as I tend the use the cash weekly for bills, grocery, petrol etc etc. maybe I need to start!

 

[virtues2011]

Apologies here guys. . I probably didn't make myself clear enough. You need to make sure that the money you receive totals the appointment book. You don't have to physically pay all the funds into the bank you can buy stock, pay bills with it, have pretty cash etc and keep all the receipts. What I mean is you must be able to show what monies have been received and what you have spent it on.

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[ADiva1]

You are on the right track with creating a spreadsheet, well done.
The best thing to do is to have a spreadsheet with the following:
Each appointment, what it was for, date and the amount charged
What products you bought, date and cost
Where you travel to and how many miles
How much money you made total
How much money you spent total
The last 2 will show your profit and loss.
From this you will get the majority of information that the HMRC requests.
This is just a rough guide...

 

[Nila]

You are on the right track with creating a spreadsheet, well done.
The best thing to do is to have a spreadsheet with the following:
Each appointment, what it was for, date and the amount charged
What products you bought, date and cost
Where you travel to and how many miles
How much money you made total
How much money you spent total
The last 2 will show your profit and loss.
From this you will get the majority of information that the HMRC requests.
This is just a rough guide...

Oh my God Diva my spreadsheet just shows how many clients I had each week and how much I have made that week. I honestly don't have time to sit down and write all the details of each appointment! If I had that much time I would write 'Fifty shades of Blue!' instead and make millions of pounds!!!
I'm a sole trader and sometimes I wish there was more than 24 hours in a day! :| Any way I hope that's enough for them... My spread sheet for expenses shows the details of what I spent in a daily basis though.

 

[Zooks]

How many different treatments do you offer? Are you purely nails or beauty too?

I am a sole trader, offer the full range of beauty and am fortunate to be busy but I still keep track of every treatment I do. How else do you know which treatment is pulling you in the most money? Which you could do with pushing a little more and what your retail is?

It's not too hard I spend an hour each Sunday inputting.

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[ADiva1]

Sounds like you are on the right track.
I can understand that you travel a lot so don't have the time to record all the information.
I don't just use what I record for tax purposes but for my own use to track what I am doing the most of, for which clients, old, new etc,
Yep there are only 24 hours in a day what has to be done has to be done!:hug:

 

[jusluce]

Alot of people don't think about banking their earnings etc or doing tax returns. I can't stress how important this is. Working in a bank I see so many people come in who are self employed and wonder why they can't get a loan or a mortgage because they have no proof of earnings. It may not seem important today, but it will be one day. More often than not you need 3 years plus books to secure lending. I wonder how many people aren't making national insurance contributions either.
So even if it's £50 a week, bank it or keep a record of it.
I recently know someone who wasn't declaring her earnings and working from home and got invested! It's so worth putting something through. Plus you can earn £9k plus before you pay any tax.

We all do it though. See a £20 note on the side and buy that bottle of wine!

 

[BeautyNerds]

This is a great thread to read!

So am I right that because I registered my business for the 1st July 2013 I won't have a tax bill until 2015?

The only thing that's confusing me is from July until a week a go I was employed and self employed. Now I'm just self employed.

I'm finding there is a lot to take in and I'm getting very confused.

I try and organise by having 2 front sheets in each monthly section of my document wallet. So I have an incoming and outgoing for each month and then I have a year overview. That's how I'm sticking to it for now. I write in all the money I take in daily and write down anything Iv paid out for ASAP.

Thanks ahead for any tips!

 

[Nila]

No I don't travel, I have my own salon, January will be 2 years! I do hair removal (Threading, waxing) and Nails. My main business is Threading as I'm very good at it. People come from other towns even London to get their eyebrows shaped by me. So I know where the most money come.

Jusluce had a good point. In the future I will try to go to bank at the end of each month. Before, I was going any day I was free or needed to do some shopping. It makes it easier for tax return or if you need a mortgage etc. Thanks for the tip Jusluce. xx