- Complete your tax return
- Compile your trading acounts
- We will advise you on tax deductibility of business expenses and on how you can maintain your records better.
- Should you be suffering from trading losses, we will advise you on how best to utilize these to reduce your tax liability.
- If you are both self employed and employed we can check that you are not paying too much in national insurance contributions.
Records which you will need to keep
If you're self-employed or in business there are certain records you legally have to keep. There are also good business reasons for keeping good records.
By law, you must keep business records for at least five years and ten months after the end of the tax year the records relate to. You can be charged up to £3,000 for failure to
maintain or retain the records you need to make a Tax Return.
You'll need to keep your business records and personal records separate. Most businesses find that it helps to have a separate business bank account.
Basic records you must keep
This will normally include:
- A record of all your sales, with copies of any invoices you have issued
- A record of all your business purchases and expenses together with invocies unless the amounts concerned are small
- Details of any amounts you personally pay into or take from the business
- Copies of business bank statements
It's helpful to keep a separate record of purchases and sales of assets that you use in the business, such as equipment. These need to be treated differently in your Tax Return. You can claim capital allowances for assets, which means that rather than claiming the whole cost at the time you buy, you reclaim the cost over time.
Other records you must keep
All businesses are different and there are many specific types of detailed record that may need to be kept. Some examples of records you should keep include:
- cash book
- petty cash book
- order notes and invoices
- copy sales invoices
- details of any other business income received
- details of any private money brought into the business
- till rolls or other form of electronic record of sales
- details of any other income
- any cash taken out of the till to pay small business expenses
- bills and invoices for purchases and expenses
- a record of stock on hand at the end of the year
- all bank and building society statements, pass books, cheque stubs and paying-in slips which include details of business transactions