Doing tax return - do we need to keep receipts or is a bank statement sufficient?

[tushywush]

I say we, as in the Royal we me doing DHs tax returns

He's a self employed tradie.

After a couple of years of nagging I've got him to pay for more or less everything from his "work" bank account using his debit card, which is also where everything gets paid into.

So I'm hoping in theory we could simply download his bank transactions and filter off a few irrelevant ones and hand over to Gus accountant.

In the past we've painfully gone through hundreds of receipts but given he's now paying for everything using his debit card, do we still need the receipts or is the bank statement showing the transaction sufficient??

Thanks in advance and sorry for rambling!

His, not Gus.

I think not -I'm not sure the details on a bank statement are specific enough. You just need a system where he empties his wallet of debit card slips and accompanying receipts every night to say a box on the dressing table

My accountant wanted receipts for everything except the smallest of sundry items when I was self employed.

You have to be able to prove that all items bought are tax deductible.

Keep receipts. A friend of mine got a tax inspection and had to take the price of a flight to NY out of her expenses, because she could only produce the ticket, not the receipt. Ticket had the price onIt

Got to be receipts as far as I know.

Ahh is that so you can prove the items rather than just the amount?

Btw - accountant never asks for them, in guessing it's more fit if DH is ever audited?

We got an inspection 2 years ago where a tax officer came to our home and went through everything in fine detail!

Bank statements are not proof of what the purchase was for as they just name the store on the statement.

Your account should be asking for receipts. I find cheap accountants dont ask for them but more professional through ones who are not cheap want you to have everything!

You must keep your records for at least 5 years after the 31 January submission deadline of the relevant tax year. Including all receipts for goods and stock, bank statements, chequebook stubs, sales invoices, till rolls and bank slips. If your accountant does not ask for them, make sure you retain them so that there is no chance for comeback if you are inspected.

If an accountant does not ask for the copies then normally you sign a waver that you have presented a true picture of your expenses and that they can only account for what you provide them with.

Make sure that if you claim VAT, that you have the correct VAT invoice & not just a proforma.

Not suggesting you would but please be careful if you claim for an item through your business then use it in the home- I have heard that Tax Inspectors like to check where purchases such as carpet really is being used for themselves!.

Ok thanks.

Income is £15-18k each year with deductions of £2-3k, so we're not talking big numbers (I know that's not really the point though).