Some help please, with tax return info (THANKS)

[MUM2BLESS]

Hi doing my tax return. Yes I know its a bit close did not mean to leave it until now. Time has just moved so quickly.

Doing utility bills for the financial year. This is the situation. One of them covers a period of 17 months (19 Feb 09 until 18 June 10. Would you add it all up and divide by 17 to give an average each month. Then I need to work out weekly as my hours are not always the same each week.

Any easier way to do this. Please see with me as this is an area that I am getting to grips with.

One week could be for example 15 hours then another 30 hrs etc.

THANKS FOR YOUR TIMEM, MCUH APPRECIATED.

I have a fantastic spreadsheet that I bought from a childminder who sells these and I couldn't be without it! (lots on here have used her spreadsheets). This spreadsheet has a tab for each month so I put the revelant amount for each month. But if your bill is really for that long, I presume that yes you'd divide by 17? Usually these bills are sent every quarter though aren't they?

WRT hours worked - this is all on that spreadsheet so it's made easy for me

In case you're interested, here's her website. I bought when I first started and use it every year. Then I copy the info on the summary page onto my tax return and hey presto, it's done :)

Thanks looneytune

For example my electricity bill

1. one bill is from 19 feb 09 to 21 may 09 this is in the middle of the months.

I do from 1 April 09 to 31st Mach 10. These months overlap.

I thought it would be easier to add them up then divide and get an average each month.

Thanks for the link you sent will look at it carefully.

looney this looks really good. I have already done my tax return this year [smug], but am currently filling in the MM account forms, do you have to start from the beginning, (april) or is it easy to transfer what I have already written down for 10/11 IFSWIM.

Thanks. anymore advice folks?

Any more tips for saving time? Does anyone have an accountant to do your books?

Hope it's ok to ask here but thought better than starting a new thread linked to tax returns......

I've got a folder for each tax year and in that folder I have a plastic wallet for each month (apr - mar). The wallets contain receipts relating to expenses. At the front of my folder I have the summary sheet from my main spreadsheet saved on my computer (I use Childsplay Accounts spreadsheet). My question is how much paper stuff we should keep in the folders? Although I have everything needed on my computer, I'm guessing it's best to have EVERYTHING printed out and with the folder 'just in case'? Can you guys let us know what you include in your files?

Thanks (hope that's ok Mumtobless)

At this time of year more than one tax-based thread is not unusual!

If HMRC decide that they want to inspect you, they will expect to be able to see receipts for all relevant expenditure (subject to existing concessions such as estimates for food expenditure, minor expenses less than £10 where no receipt is available (ice creams in the park is a good example) etc.). If you don't have receipts they will disallow the expenditure and adjust your tax return, and will probably open up other years as well.

They used to be able to open up any period in the last seven years for an inspection of self-employed accounts, but this has now changed so in a couple of weeks you can throw away everything before April 2005.

Disclaimer: this is the normal situation but will not apply in every set of circumstances so you should check whether any other requirement applies to you.

Thanks for that. I decided to print EVERYTHING off in the end so have started adding those to files. Worried in case my computer breaks/gets stolen etc! At least then if I'm inspected, they can do everything and where all the figures match up. Thanks for the updates, that's good to know for the future. I didn't start childminding until May 05 so I still need to keep what I have but at least I shouldn't need to keep massive amounts in the future :)

As for tax threads - I'm aware it's the time of year but didn't want to clog a general childminding section with thread after thread about accounts stuff and I think it's useful info for others anyway - plus gave OP a little bump for the original question

Oh, and to answer your specific question, you should print out and keep the summary page of your accounts, detailed pages which show how each figure in that summary relates to individual items of expenditure which are supported by receipts, and a calculation showing how you have arrived at each figure in the tax return where this is not obvious from the summary (household expenses for instance).

Also keep bank statements, cash and petty cash books (if you use one), copy invoices/receipts given to parents - basically everything!

Crossposted. Yes, it is a bad idea to rely on computer records for this so you have done the right thing.

Thanks for that. Whilst we've got you .......can I ask about the bank account side of things......are we supposed to have separate bank accounts for our business or is ok for it all to be through normal current account? I know most people use own bank account and so do I (because most expenses for childminding are part of home related stuff anyway). Just wondered if there are any set rules on this. I don't want to start putting bank statements in with the rest of the stuff as they're so big but I could print the bits that show all the income coming in - or do we HAVE to put in every statement for the whole account, even though most of it will be personal stuff?

TIA :)

No, HMRC cannot insist you have a separate business account.

Thanks :) Thought that was the case as I'd have checked that when I started, but time goes on and then you think 'hmm, am I doing this right!'

my clients who use personal accounts send me all their bank statements (and credit card bills - makes fascinating reading ) and I file them along with paper receipts, and print outs of online receipts. Basically if there can be a paper copy, it's there in the files.

A seperate business account makes things easier from an accounting point of view, as it's obvious what is business and what is personal. But it's not always straightforward in practice (she says having just paid the ballet fees and next month's mortgage out of the business account as it takes 5 days to transfer money to the personal account ).

I just find the whole load of paper thing really hard - poor trees :( Just feels such a waste but needs must and all that! :)

I was away for a bit but others stepped in with good answers!

No, HMRC can't force you to do anything, but if you don't have enough evidence to back up your tax returns and they inspect you they can effectively decide for themselves how much tax you owe (although you can of course appeal this).

It is very common for self-employed people to put business and personal receipts through the same account, so don't worry about this, but HMRC will want to look at the statements to see if there is any money coming in that you have not declared so yes, you will need every page. You don't have to keep paper copies though - most bank accounts will let you download statements online going back at least five years for exactly this purpose now, and if not they will produce paper statements going back forever although they will charge for this so check with your bank if you are going down this route.

I do have all my bank statements in a file just for statements. Rather than copy all of these, is it ok to have them in a separate file as long as I give that file if I'm inspected?

Yes

Each month I file my receipts and invoices in an envelope, with the month written on it, after logging on my computer. At the end of the year, I print out all the worksheets I used to calculate my tax return and file them in a big envelope with the tax return. All this gets put together in a box for the year. If the Inland Revenue ever want to come and play with bits of paper, they are welcome!

NB: I also do the same with my other accounts, so if they query a payment into my account, I can show that it is a birthday cheque from my Dad, or whatever and nothing to do with the business.

Looney - I have a separate account that the parents make their payments into, so I can check quickly that all the money has gone in, but everything else comes out of our normal bank account and a lot is done in cash anyway.

Sorry another questions regarding claiming for expenses.

Example if your council tax is £1500.00 for the year and you divide this by the number of weeks, what about the months that have five weeks instead of four. Claim for five still?

It s the first time I have completed this by myself. So really would like your help lovely people

Thanks

I am understanding it now. If I work the hours within the fifh week then claim it!!!!!

Having a quite moment alone to get my teeth into my tax return then my paper work