Basic TAX RECORD KEEPING when you’re self employed

When you’re self employed in the UK you’re obliged to keep business accounting records. Today we’re looking at what information I log to record income, business expenses, running a vehicle through the business and using our home as an office. As per usual, I am not an accountant. Always use a good accountant.

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Extension Cost Chapters:
0:00 - Introduction
3:10 - HMRC requirements
6:50 - How long to keep records?
7:25 - Logging business expenses
14:55 - Tracking business income
20:33 - Business mileage
26:28 - Using your home as an office
30:52 - Summary calculations
33:20 - Spreadsheet vs accounts software
34:40 - Dealing with electronic receipts
37:40 - Data backups and final tips

#Accounts #Expenses #tax

[SmallBusinessToolbox]

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[Craigo]

For paper receipts you could scan them in as pdf and on Google drive have a 2024/25 tax year folder for them named sequentially as per your Expenses column BUT ALSO then add a "link" to that Google drive directory and past the link into the cell so it's immediately referenced if needed. Same for e-receipts but without the faff of needed them to be scanned in :)

[Amanda-JaneLove]

Have just got stuck doing my self assessment tax return, and searched loads before finding this video.
Thank you SO much! This has literally answered all my questions, and I have now completely changed the format of my spreadsheet too. Perfect.
Thank you!

[DRJUDE]

cracking video! Thanks Andy! all info no fluff!

[Zdlifestyle]

New subbie! You might not be an accountant -but this was perfect!!! This was definitely the one I found most helpful and easy to follow - thank you! ❤

[Jules_Pew]

When I was working as an accountant, I'd love to have such clear records. On the income sheet, I'd add column for amount outstanding and any bad debts, which makes it easier at the year end if accounts are prepared on accruals basis, plus if invoice is part paid it stands out. I think I only remember one client who could fill in a Simplex D book in correctly and the VAT version was terrible. A lot of people don't know to use filters, so lovely to see them used. Maybe should have mentioned the formula to subtotal items. Also recheck formulas from time to time as it's easy to change one and forget you've done it for just that one cell as carry on using it when it should be different.

[tlangdon]

I would also recommend leaving some notes for your loved ones as to how you have been doing your accounting! If you were to die, it would be really useful for your executor to know where your accounts (and receipts) are to be found and something about how they are organised. Having the passwords for services your business uses safely stored is also a good tip. I use a password manager and have seperate folders and records for the different services I use for my personal and business activities.

[darrenpaulgreen]

I use the previous version of this spreadsheet that has served me well for 3 years since setting up as SE, thankyou!
Alongside this, my accountant’s fees include the use of Dext for logging receipts, both electronic and paper via photos taken via the app. They introduced this as a workaround during lockdown and have kept it in place. I suppose if I ever leave my accountant then potentially I may have an issue accessing them, but not currently on the cards.

[smartiesubunkthnubuts]

Mate, you are a leg end. I've just started a property maintenance service and needed this information SO bad. I'm a Geordie living in Manchester so it's a shame your a distance from me as I recon I owe you a few pints. Cheers for the help.

[smalltounboy]

B&Q receipts are notorious for having the date missing when they are ripped from the till printer, check before you leave the store!!

[cafe-nitb]

Hello Gosforth ! Great Video !!! 😀OMG you were audited ? (Wow would love to hear that story starbucks and all that). What may make your system faster is to us a dedicated acc for your business, download and work from there eg add a column for mileage and add next to each entry eg BnQ Xmiles.. Barclays give a good bit of info

[BigSister]

great information, i have just been working self-employed and pay as you earn also I have a pension which is also tax have you got a video on this and what can I claim on this

[kevinbroughton]

Hello, I'm thinking of going self employed with hobbies and part time jobs I have. I'm confused about why your spreadsheet is January to December when the tax year is April to April. Why isn't your spreadsheet April to April to match to tax year?

[Adam-rgrk]

Hi Andy, thanks very much for another excellent video. Do you have a copy of your spreadsheet that you would be happy to share? Many thanks

[MrDaveRotherham]

I'm a bit confused re: business mileage. I do it more or less that way, in a spreadsheet, but I've read that this isn't sufficient - that you MUST keep a physical logbook with odometer readings for business and personal journeys. Is this not essential?

[MattGlynn]

Great video Andy, quick question about vehicle expenses. Do you still keep all the receipts for vehicle insurance, fuel, repairs etc when using the milage method as show?

[silaslingwood]

hello, I have a question regarding the vat threshold. I have a seasonal business and similar businesses usually work up to when they reach the VAT threshold for the year and then stop as to not become VAT registered. If I were to do that and then did some work personally for someone else after I have finished, or even set up a completely unrelated business, would both my personal income from working for someone else, or the extra business I create have a separate incomes and would not contribute to my existing businesses vat threshold. I would be a sole trader/individual in all of these examples. Thank you!

[peter]

Would you also keep a record of your business assets/liabilities on another spreadsheet?

[Korbi-le.]

Do you have to keep record of your utility bills even if you aren’t the person that pays those bills?

[Geostationaryrbit]

Hi Andy, quick question, would you still recommend using one tap receipts? I noticed you didn't include that recommendation here on you're video where you are not sponsored by them. Did you try them for a while and revert back to you're paper method?