Cash based business are always more prone to attack by HMRC, and without proper records the taxman is entitled to estimate your income from your banking records, your lifestyle, field reports, your web site, and any other information available to him. But if you have a good set of records which you write up as you go along, then you put the onus on the taxman to try to prove your records are unreliable. The TaxRelief Diary should help you protect yourself against the unwelcome attentions of a tax office investigation.The law requires you to keep business records which are good enough to enable you (or your accountant) to complete your tax return form each year. If your books are disorganised, full of gaps or non-existent, you are likely to find it much more difficult and stressful to fill in your tax return, and much more expensive if you pay an accountant to sort it out for you. And remember the general rule is that any unexplained money coming in is presumed to be taxable, while any unexplained money going out is treated as personal expenditure and not allowable. So if your books are incomplete or unreliable you may end up paying too much tax.
The TaxRelief Diary is designed to help you achieve these objectives by giving you a simple framework for pulling together the following information about your business:
- Daily record of your business income.
- Weekly record of your business expenses.
- Whether expenses have been paid from the cash you received from clients or from your bank account or credit card.
- Daily record of your business mileage.
- Weekly cash account designed to demonstrate where any money you banked came from, and how much cash from the business was available to help support your lifestyle.
- Weekly notes section for recording any special features of that week – for example tours or reasons you didn’t work.
- A month by month section for recording regular expenses which you pay from your bank account or by credit card.
- And new in this edition there is an extra section to help you keep track of your Adultwork Credits.
The 2017/18 edition is now available for £13.25 plus postage. It’s designed to fit into a handbag and it is coil bound so it lies flat and is easy to complete. It also includes a straightforward set of step-by-step instructions. There is a double page for each week, and it shouldn’t take you more than 5 minutes to complete each working day, with an extra 15 minutes at the end of each week.
PS A couple of things to note about the pricing.
- If you find the prices are quoted in US dollars just click on the US flag at the top of the page and you should be able to change to UK prices – of course if you’re in the US you probably want to pay in $, but as the yanks (sensibly) run their tax year from January to December I doubt you’ll find the diary much use.
- You will also see that Lulu quote the price as £12.95 excluding VAT. In fact they are not adding VAT on and £13.25 is the price you will pay – plus postage and packing. I paid £3.99 for shipping 2 books, but it may be cheaper for just one.