Self employed accounts profit/loss balance sheet

[Belle De Jour]

Hi
I hoping a kind geek or two can help!
i have done a search but brain now fit to explode :Scared:
I started trading on the 17th August, (again after a break with the kids) im trying to sort out profit and loss and a balancing sheet.
i have several questions which i cant find the awnser too and i dont seem to be able to understand HMRC or Business Link advice online.

1. I have products which i have been buying since jan 2012 in preparation to starting business (for which i have reciepts) am i allowed to claim these as expenses against any income ? (due to being brought before i started trading and also because they where effectivly brought in the last tax year)
2. could somebody let me know how would i decribe this on my balance sheet is it an asset? liability? capital investment or something else (sorry yes i am clueless!)
3. i have brought fixtures and fittings (table, storage unit, lighting ect) as well as a domain name and paid for a logo. i think im right in saying this is something that is of deprecative value (a capital asset?) these should be listed separate to the above right?
4. Training costs and legal fees where do they come into it?

ive not put any 'money' into the business other than in terms of the above items which i have paid for in advance, im just really stuck as to how i would show all of this to the tax man ect.
sorry!!! i have no idea and i cant afford an accountant,
i did have a word around freinds incase they could help but no one knows!
any advice greatfully received (to make matters worse i have no excel i do however have a simplex D accounting book but i couldnt understand that either!) i have recently downloaded sage app from hmrc and also invoice2go lite so that i can keep track of what customers are paying me and running incoming and outgoings now the business has started but it doesnt help with my presenting the above data. hope someone can help (if you can understand what im harping on about~! )

 

[persianista]

Depreciating assets mean that you use the cost of assets over a period of years, as opposed to one year.

Have you thought about contacting business link as they run basic bookeeping courses which would help you.

Pre purchased stock and equipment is usually fine to put through. Just list it as either stock or equipment.

Try your local library for a book to help you with excell, or sage.

Try and keep it simple. You only need to list expenses and income. If you want a full profit and loss or to depreciate assets, then you need an accountant as the rules are extremely complex. Accountants spend years doing a degree to be able to do what they do.

 

[ssuk]

There is a free spreedsheet for download on our site www.beautysalonsoftware.co.uk feel free to amend it to suit your business.

Sean

Sent from my GT-S5830i using SalonGeek

 

[Beansy]

Are you a LTD company or sole trader as this determines what you need to record/produce?

 

[cherrybaby]

Hi Belle de jour,

You say you don't have enough money for an accountant but I'm afraid with the questions you're asking, if you've already tried Business Link and HMRC I'm afraid you need one. Most accountants will do an initial consultation for free and remember that their fees are expenses to the business. They will save you more money overall than they cost and you will be getting PROFESSIONAL advice.

Hope you get sorted.

 

[Belle De Jour]

thanks for your advice geeks! :Love:
i think i will phone biz link and see about any courses that they run, i also went to libary as suggested and picked up a book thanks! I didnt think of the libary! sometimes you cant see the wood for the trees and all that!

im a sole trader (thank goodness! I dont know how all you clever geeks manage with companys ect scares the hell outta me!)

i shall also look up for an accountant and see about a free intial meeting to give me more idea of just how much it will cost as was mentioned it can be claimed back anyway so might as well save myself the headache (or heartache of getting it wrong!)

also thanks to the link for the spread sheet software i shall have a look but in the mean time (incase anyone else is reading who is as confused as me over all this accounting stuff!) i found a really usefull app on the iphone (also on android) called Invoice2go lite its brilliant and i have set up and designed invoices which can be emailed to clients with a paypal option to use if you so wish. it also has an app within it which allows you to track all of your expenses and can be sync with the desktop ect along with lots of other helpful bits.
i also found a free app on the HMRC website which can track income and expenses using sage which is great as it has a button you can click on which links you in directly with advice from the hmrc web site (no doubt will come in handy!)
feeling much more positive armed with your advice and the apps this morning!
thanks geeks you rock!

 

[Baggybear]

I use brightbook a free booking website to keep my accounts and find it a very useful thing as you enter the information and it does the rest including charts and graphs, for example to help you see your spending against your income.

https://mybrightbook.com/what_is_brightbook/about_brightbook/

 

[charlenejohnson]

As a sole trader, you will need to list your income and expenses, then calculate your profit/loss based on these figures, which will determine NIC'S payable (if over the threshold) and also tax payable (if over the threshold).

If you are purchasing an asset for business, such as tools/machinery/car you would reference it as a capital allowance and the depreciated value per year would be deducted from your taxable income, although this isn't the case for all assets! The figure allowed would then form part of your profit and loss accounting. This is pretty complicated accounting for someone who isn't a qualified bookeeper/accountant and there are still further considerations that would need to be able to assess if it is allowable/non-allowable all of which you should employ an accountant for! The cost you will pay for an accountant will be considerably less than the cost you could pay if you make an error!


If you are unsure/ would like more information contact HMRC as they can advise you on the phone with the most up to date information and also inform you of when their next basic accounting workshops will be taking place.

Here is a link you may find useful in the meantime:

HM Revenue & Customs: Tax allowances and reliefs if you're self-employed

I am a chartered accountant who retrained in the hair and beauty industry!

Hope this helps

Charlene