Need help/advice making everything official (A thread about tax)

[tryme1]

Quick question though, what sort of format do these accounts need to be submitted in? I'm planning on keeping track of all transactions in iBank (for the Mac) and would like to make sure I can export data correctly.

OK, if you are going the self-assessment route, you will need to complete a self-assessment tax return (http://www.hmrc.gov.uk/forms/sa100li-2009.pdf ).

You do not actually submit accounts, just the tax return. The HMRC doesn't ask to see the accounts, so you can use iBank or whatever you are comfortable with.

[bonusjackpot]

Thanks very much to Doolally for suggesting the separate credit card and also the warning about tax payments in the second year of business. One quick question about finance stuff though. A couple of people suggested setting up a separate bank account to house 30% of all profits (for the taxman). Does that mean you recommend having three accounts: my personal day-to-day account, my main business acount, and a 'tax' account?

Do these business accounts cost to set up? Or can I just use another 'personal' account - are there any disadvantages to doing this?

Hi

I have a business bank account with HSBC it is completely free to setup and use, as its mainly all online transactions etc, and cheques and actually money (paying in etc) are free up to 50 per month, which will never happen, so yes HSBC is completely free. It comes with a bank account (debit card), a saving account (which I use for tax money 30%) you can also have a credit card (£32 per year) free for the first year (£1000) I also have my own personal account elsewhere.

As for accounts, I keep a book, in/out thats it, though I will be doing it on excel next time. The tax man does not need this, the accountant does, you only have to give final figures to taxman (online) when you do the self assessment.

Hope that helps.

[theshortstack]

Hi

I have a business bank account with HSBC it is completely free to setup and use, as its mainly all online transactions etc, and cheques and actually money (paying in etc) are free up to 50 per month, which will never happen, so yes HSBC is completely free. It comes with a bank account (debit card), a saving account (which I use for tax money 30%) you can also have a credit card (£32 per year) free for the first year (£1000) I also have my own personal account elsewhere.

As for accounts, I keep a book, in/out thats it, though I will be doing it on excel next time. The tax man does not need this, the accountant does, you only have to give final figures to taxman (online) when you do the self assessment.

Hope that helps.

Thanks for the feedback - much appreciated.

Just out of interest, are you registered as a sole trader or have you have set up a limited company?

Would you recommend HSBC? I'm at the stage where I'm going to talk to various banks ...

Cheers again

[RayUK]

Sorry to bump an old-ish thread but TheShortStack PMed me and I can't reply because I don't have enough posts yet!

TheShortStack: email me at ray (dot) poynter (at) gmail (dot) com by all means

Regards,

Ray

[theshortstack]

Thanks for the help Ray - hugely appreciated!