[ReaperWD]

Hi everyone,

im currently designing my accounts, so i can keep an eye on my incomings and outgoings, for when i have to sort out tax.

The biggest problem i can see, if i will have my "normal" job in retail as well as any money i earn from webdesign.

Ive had a friend tell me to do a set of tables:

1) listing the days i get paid by my normal job, with the amount before tax, and the amount of tax i pay and NI

2) List all income, company name / invoice no / amount due / amount paid / date paid  and then a total column

3) List all outgoings, company name / invoice no / amount due / amount paid / date paid  and then a total column


how do you all handle it? and can anyone give some advice?

Thanks

Reaper

[BritZin]

Well Usually, it's best to keep a seperate bank account. However, you should keep a spreadsheet with all of the business activities on it. Just keep a stringent log of everything the business does, and all of the business funds that are going in and out of your account. Aslong as you do that you should be fine. I'm eagerly awaiting my tax return, can't wait to have to waste an afternoon filling it out. Not only that, when the business one comes through aswell that's another day gone. We waste our time, and we have to pay for it at the end of it. I always thought that perspective on it was quite amusing.

[wizely]

I've written my own database for handling invoices/ book-keeping which is quicker and easier than handling spreadsheets - there are plenty of free ones out there and expense-trackers that might help you.
Having a separate business bank account will help you lots.
I use Legatio software for doing my tax returns online - it's only about £30, piece of piddle to use and calculates everything for you. Online returns are so much less hassle.

[ReaperWD]

wizely, on Apr 7 2009, 15:44, said:

I've written my own database for handling invoices/ book-keeping which is quicker and easier than handling spreadsheets - there are plenty of free ones out there and expense-trackers that might help you.
Having a separate business bank account will help you lots.
I use Legatio software for doing my tax returns online - it's only about £30, piece of piddle to use and calculates everything for you. Online returns are so much less hassle.

Accounts are easy for me, im good with numbers. The biggest problem i can see, is determining what to declare as "business"

i.e: Can i count fuel for "business"? or my mobile phone? i am going to be changing mobile phone contracts, to one that suits me better for business (unlimited internet/emails and more calls), but i will still be using some of it for personal use.

Reaper

[BritZin]

It's funny how things go.
Seeing this thread prompted me to check over the company accounts and prepare them since they end their financial year at the end of the month. And I've found a £1.02 discrepancy! And I can't locate it!
I refuse to pay for an accountant on the basis they are all evil. So on that, I’ll struggle along .

[wizely]

SLGWN2P, on Apr 7 2009, 19:06, said:

It's funny how things go.

Tell me about it - I'm burning-up my keyboard trying to finish a manual for a client's book-keeping software!

Sorry can't help you Reaper on what you can/ can't claim - not being in the country often or working on top of being self-employed, or even incurring many expenses means my tax is uber simple... pretty much here's what I earnt!

[Sam G]

If you've got a day job and occasionally do websites (i.e. not full time), then just do a self assessment tax return and put your web design monies as 'any other earnings'. Obviously you need to keep a track of how much you earn each tax year.

[Pheasant]

I've found FreeAgent to be brilliant for my accounts, saved us alot of headaches when it came to tax time

http://freeagentcentral.com/

I'm sure they still have a free trial so give it a bash for a few weeks, plus their updates are brilliant!

[ReaperWD]

Hi everyone,

I think ive managed to get an idea of a system in place that i'll use, but now HMRC have managed to get me confused again.

If i have to do a self assessment, and send it in, they say to do it online is january, but the end of the tax year isnt until april, so how can i say what ive earnt when ive still got over 3 months of trading left?


Sorry for all of the noobie questions, but i dont want to get hit by their heavy fines.

Reaper

[Scott S]

The return you submit by January, is for the PREVIOUS tax year. So for instance, our current tax year, which ends this month, the return would be filed by January 2010.

[ReaperWD]

Scott S, on Apr 10 2009, 13:49, said:

The return you submit by January, is for the PREVIOUS tax year. So for instance, our current tax year, which ends this month, the return would be filed by January 2010.

Ok, that makes sense. Not that bad then really, if you get months to fill it in, or is it a 500 page novel?

Reaper

[BritZin]

ReaperWD, on Apr 10 2009, 19:11, said:

Ok, that makes sense. Not that bad then really, if you get months to fill it in, or is it a 500 page novel?

Reaper

Practically. Mine is 16 pages, and the companies is only 8...
Usually consisting of questions like "If you live in a council flat, beside a river, but are not blind"

[Scott S]

You forgot the all important question:

If you're not human, but live like one, but aren't married, but are living like you were, and don't have children, but treat your pets like you were, then what is the size of your non-marital marital shoe-box?



Honestly, some of the questions I've seen on those bloody tax returns are ridiculous.

[ReaperWD]

Scott S, on Apr 10 2009, 19:42, said:

You forgot the all important question:

If you're not human, but live like one, but aren't married, but are living like you were, and don't have children, but treat your pets like you were, then what is the size of your non-marital marital shoe-box?



Honestly, some of the questions I've seen on those bloody tax returns are ridiculous.

Is it actually possible to see a tax return before i go self employed? can i request to see it from hmrc or do i need to finda copy online somewhere?

Reaper

[Scott S]

You'd need to find one online somewhere.

There is software available that takes the hassle out of filing your taxes, taxcalc is the one that springs to mind, and from what I remember, is actually relatively easy to use.

[BritZin]

Tax returns aren't that difficult to fill out; So I really wouldn't worry about it Reaper.
Well I say "not hard to fill out" it depends how much of a Prozac and Vallium Combo you're on at the same time.
But like Scott said, they're quite ridiculous.

The worst one I think I've ever seen is;

"If you're married, and live in a council house, but do not claim child benefit, regardless of whether you have children your self, at what point would you start to claim family allowance?"

They're quite a useless agency.
My tax return came with a poster saying "Would you like a charity to receive your tax return instead?" I think I'd prefer them to get it over Revenue & Customs...

[ReaperWD]

SLGWN2P, on Apr 10 2009, 20:36, said:

Tax returns aren't that difficult to fill out; So I really wouldn't worry about it Reaper.
Well I say "not hard to fill out" it depends how much of a Prozac and Vallium Combo you're on at the same time.
But like Scott said, they're quite ridiculous.

The worst one I think I've ever seen is;

"If you're married, and live in a council house, but do not claim child benefit, regardless of whether you have children your self, at what point would you start to claim family allowance?"

They're quite a useless agency.
My tax return came with a poster saying "Would you like a charity to receive your tax return instead?" I think I'd prefer them to get it over Revenue & Customs...

At the end of the day, shouldnt they be deciding at what point they do it? i dont see the need to question people for stuff that doesnt make any difference to them.

Reaper

[Luke Terry Design]

wizely, on Apr 7 2009, 15:44, said:

I've written my own database for handling invoices/ book-keeping which is quicker and easier than handling spreadsheets - there are plenty of free ones out there and expense-trackers that might help you.
Having a separate business bank account will help you lots.
I use Legatio software for doing my tax returns online - it's only about £30, piece of piddle to use and calculates everything for you. Online returns are so much less hassle.

I use exactly the same, Wizely's right.

[BritZin]

Similar to what Luke & Wizely said, we wrote our own invoicing database system, but we just use an excel spreadsheet for accounts. Although, I've had a few balancing problems over the past few weeks.