boring topic - self employed tax return - info needed??

[Minitoots]

How detailed do my self employed records need to be? I'm a self employed designer/agent and have used a book keeper to my do my accounts each year, but am trying to do some of the paperwork for her this year to cut costs. I keep hand written spreadsheets with all info of what invoices I've raised, amount, date payment received etc etc and the same info for payments I've made to my designers (as a textile design agent I take a commission on designs I've sold for them). I give the book keeper all this info plus all my bank statements with notes on them of any other purchases etc.

She says I also need to copy ALL details of ALL bank statements ont an excel sheet with details of what they were for etc etc. It seems as though she wants it on an excel spreadsheet because she says if I put the opening balance in the 'balance column' when I start the forumula it should tally with the bank statements. As I'm already giving her the statements and spreadsheets with these amounts on, it seems like a waste of time to do it all again? Hope this rambling question makes sense!

Does anyone know if its 100% neccessary for me to do all this?

[????]

Can't you down load your bankstatements?

[PeckhamRose]

Depends how much you earn. You need only fill out the 4 page mini one if you earned less than ?15,000 (tho I think that's going up to ?30,000 soon??) If you're less than ?15,000 then just fill in the basics for now that it asks for and worry about the detail to back it up later.

And learn from this to save yourself time and money in the future!

[Sue]

Wouldn't have thought so.

You have the choice of whether or not to send the Inland Revenue detailed stuff or not, I seem to recall from the on-line tax form I filled in last week :)

Though obviously you need to have all the details to hand should the IR or whatever they're called now choose to come and investigate you.

I used to use an accountant and now I just do it all myself, though I'm mainly PAYE and not self-employed full time, so fewer records to sort out.

In my experience the tax office is very helpful in answering stuff like this, though for obvious reasons they're very busy at the moment, why not try giving them a ring, I think they open at 8am which might be a good time to get hold of someone.

[Minitoots]

Thanks for the helpful replies so far, everyone!

[trinity]

Sounds as if she is suggesting the excel spreadsheet to ensure that you have reconciled your closing bank balance to your income and expenditure.

This would be to make sure that all income and expenses were included in your accounts. This would pick up any items going through the bank account not included in your invoice and payments schedules eg bank charges and any items in your schedules that have not yet hit your bank account eg cheques not yet cashed.

[Minitoots]

Hi Trinity,

yes I've since spoken to her and that's just what she said too. She said because that's the way she's always done it and submitted it to the tax office, they may query it if she starts doing it in a more simplified way. I need to check that out with them to see if that's right but will probably just go ahead with her way this time...

Minitoots

[Coman]

I am a local accountant.

Please let me know if you need help with your self-assessment.

Regards, Ray

020 8653 4454

comanandco.co.uk

[Ramble66]

I don't reconcile my accounts but I think I should. I just keep a record of all my earnings and receipts for expenses/costs and put them in a spread sheet. Very basic, I think I should use an accountant. I mean to use one every year but always end up doing it all myself.

As a note some internet backing sites let you download your bank statements straight into an excel format. I don't think HSBC does yet but I know Lloyds does or at least used to.

[Minitoots]

I'll look into loading bank statements straight into an excel format - I was just thinking that would be a good idea!

I spoke to the tax office who just said 'it's up to your individual accountant as to how they do it'!!! Also spoke to my accountant who said because she has always done it in the same (very meticulous) way, the tax office is likely to query it if she now changes to a more basic format. I'm still not convinced! I've gone with it this time but will ask tax office again after it's sorted. It was a good feeling to post it all off to her.

Thanks everyone for the useful info!

Minitoots.