self employment / accountancy questions - need help please

[jobhunter7]

i've signed on... although i've been self-employed, i've been winging it a bit with doing my books a bit as i've made so little money. anyhow i'm supposed to fill in a supplemental form and it brings up these questions i'm stuck on:

• Has any money been received into the business since you or your partner last worked?

• Is the business regarded as a going concern by yourself, your bankers, accountant and creditors?

• Is there a profit loss and account for a 12-month period ending within the last year?

• Is there a trading account for a 12-month period ending within the last year?

• Are there any balance sheets for the last year?

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i do have books (of a sort) as i've made a record of what money has come in and kept receipts and invoices... perhaps there may be online examples of how i should have been laying things out properly so i can transfer the information across.

thanks

or perhaps another site you could suggest?

www.gov.uk/government/uploads/system/uploads/attachment_data/file/300232/b16_print.pdf

Standard accounts layout and a lot of extra information about self employment records here
talkinpeace2.blogspot.co.uk/2014/09/here-is-list-of-questions-i-most.html

-Is the business regarded as a going concern by yourself, your bankers, accountant and creditors?

I don't have an accountant or creditors. I do have a regular bank account. I still considered this 'whole thing' ongoing - so I suspect the answer is 'yes' t this.

Thus far because I've been dealing with such piddling sums, I haven't got round to an accountant. I have all the got information though. But my sheet of accounts information for 2013/2014 just shows:

Expenses:
Stationary - a few pence

Taxed current account interest - a few pounds
Taxed savings account interest - a few pounds

as nothing else happened (and nothing much else has happened in this tax year similarly). I probably have all the information, but it is knowing how to set it out properly.

-Has any money been received into the business since you or your partner last worked?

I'm not really sure I understand this question at all.

you need to make sure you are claiming for all the expenses you are entitled to otherwise you will end up paying unnecessary tax at some point. For example are you claiming anything for 'use of home', even if you only ever spend admin time drawing up your accounts, planning etc you can claim £4 per week for 'Use of home' - £208 per year tax free income for you. What about travel expenses, do you need to go to the bank, post office, visit clients, buy stock or materials etc - record all journeys and claim 45p per mile. I would find it very odd for you only to have a few ststionery items as the sum expenses for any business to be honest.

' Going concern' means that it is currently trading and you have a reasonable expectation that the business will continue to trade in the future. Unless you actually plan to wind up the business or run it into the ground, it is probably a a going concern.

I take the second question to mean - have you generated income through your business since you ceased to be somebody else's employee? That's a yes or no question.

A P&L is easy enough to put together. Is your business registered at Companies House? If it is, then it's a statutory requirement to file accounts so you should be doing this anyway. If it's not, then you should just list out your income and expenses on a spreadsheet.

There are lots of online bookkeeping packages that you can use that are very easy to input your transactions, which will then produce your P&L and balance sheet for you - try xero or clearbooks.

It's difficult to say without knowing more about the nature of your business - the only income you mention is bank interest - is that correct?

thanks. I will have to get an accountant. but i guess as i've been basically making not been making enough money to pay tax anyway, i guess its not really been a problem yet. my main concern is getting these forms done right now.

Treats - ' Going concern' means that it is currently trading and you have a reasonable expectation that the business will continue to trade in the future. Unless you actually plan to wind up the business or run it into the ground, it is probably a a going concern.

OKay - it is then.

Treats - I take the second question to mean - have you generated income through your business since you ceased to be somebody else's employee? That's a yes or no question.

I wasn't sure what it meant by that. If that's the case, yes.

Treats - A P&L is easy enough to put together. Is your business registered at Companies House? If it is, then it's a statutory requirement to file accounts so you should be doing this anyway.

Nope it is not.

Treats - If it's not, then you should just list out your income and expenses on a spreadsheet.

I have been doing that.

Treats - There are lots of online bookkeeping packages that you can use that are very easy to input your transactions, which will then produce your P&L and balance sheet for you - try xero or clearbooks.

Okay - are these really expensive?

Treats - It's difficult to say without knowing more about the nature of your business - the only income you mention is bank interest - is that correct?

Yes for this tax year and the previous one.

Treats - If it's not, then you should just list out your income and expenses on a spreadsheet.

I have been doing that.

CORRECTION - just on a word document (and using my calculator).

I would put all your existing records onto one of the online packages I mentioned so that you've got a) - a proper record for any future accountants or HMRC or whoever and b) - it can format you a proper set of accounts.

I think that would make completing the JSA forms (is that what you're applying for?) a bit easier as you could just submit the P&L and balance sheet to demonstrate that you're basically not earning anything from your business.

Does that make sense?

-Is there a trading account for a 12-month period ending within the last year?

Does that mean do I have a business bank account? I don't (incidentally).

Treats - the JSA forms (is that what you're applying for?)

Yes.

Treats - "I would put all your existing records onto one of the online packages I mentioned so that you've got a) - a proper record for any future accountants or HMRC or whoever and b) - it can format you a proper set of accounts.

I think that would make completing the JSA forms (is that what you're applying for?) a bit easier as you could just submit the P&L and balance sheet to demonstrate that you're basically not earning anything from your business.

Does that make sense?"

Are these packages monstrously expensive and is one better than the other. Being on JSA means I don't have too much money coming in right now. Also I am a bit scared of the DSS and Inland Revenue and the way I've thus far been winging my book keeping.

A trading account is a bit woolly - it COULD mean a bank account, but I would expect them to ask specifically for bank statements.

It could also - probably more likely - mean a shortened version of a full P&L - i.e. just a list of your income and expenses.

It sounds as though you already have everything you need to submit the form - if you're confident that the Word doc is set out clearly. I would answer yes and yes to the first question, then no, yes, no to the other three. If the information you provide on your Word doc isn't sufficient, they'll have to come back to you.

My only worry - on your behalf - is that any claim for JSA would get delayed while they reviewed your documentation and asked their questions.

Xero is £9 a month for simple accounts btw - not much if you're running a regular turnover. It also (imo) pushes up the threshold at which you need to instruct an accountant because it's very user friendly for the non accountant. So there's a saving there also.

But that seems by the by for the time being.

you don't need a bookkeeping package at this stage. Just keep records of all transactions as you have been doing. You don't need an accountant either. A Self-Assessment is very simple to fill in.

My only worry - on your behalf - is that any claim for JSA would get delayed while they reviewed your documentation and asked their questions.

I'm not stoney broke at the moment - so I can hang in there for a bit. I just don't want to face the spanish inquisition and would rather go in prepared.

Xero is £9 a month for simple accounts btw - not much if you're running a regular turnover. It also (imo) pushes up the threshold at which you need to instruct an accountant because it's very user friendly for the non accountant. So there's a saving there also.

Cool.

But that seems by the by for the time being.

I'd rather deal with the friendly people on mumsnet first.

Not been audited yet and if I was to be, I was planning to get an accountant in to get things tidied and set out properly.

Treats - >It sounds as though you already have everything you need to submit the form - if you're confident that the Word doc is set out clearly. I would answer yes and yes to the first question, then no, yes, no to the other three. If the information you provide on your Word doc isn't sufficient, they'll have to come back to you.

I've got to go in next week, so I guess I can take in files with me and ask more information... but I have a slight aversion of alerting the authorities that I have been sort of making it up as i've been going along.

Treats - if you're confident that the Word doc is set out clearly.

Well what should be on there?

For a sole trader (un-registered company), all you have to have is a very simple Profit & Loss for each tax year 6th April - 5th April so:

Turnover: Total income recieved during the year

Expenditure: Expenses can be broken down into headings like stationery, rent, travel, etc but not necessary for your size

Bottom line is just than profit/Loss