Do you need to issue an invoice?
Q. I’m a painter and decorator, working mainly for individual householders. I only give out an invoice for work done if my customer asks for one. Is this acceptable to the Taxman? I’m not VAT registered.
A. As you are not VAT registered there is no legal requirement to issue invoices for every sale, but it is good business practice. If you accurately record the money you receive from customers, and those amounts can be tied up to the cash and cheques you bank, the Taxman should not have a problem with your business records. However, if the Taxman suspects that you have been under-recording your sales, because you receive many payments in cash which are not immediately banked, you may have a problem. We can help you set up a system which will accurately record your sales, and keep the Taxman happy.
What expenses can I claim as a Ltd Company?
Limited Company expenses The rules for deciding what business expenses can be deducted from your profit for tax purposes can be quite complex. The importance of claiming all your allowable business expense deductions cannot be overstated. When a limited company claims allowable expenses, they will reduce their profit which in…
Pros and cons of a Sole Trader vs a Limited Company
Are you thinking of setting up your own business? For many would be entrepreneurs the idea of starting a business can be a life changing experience. There are many important issues to bear in mind when you consider how to start a business. Before embarking on starting a new business…
Win a year of Accountancy and Insurance
We’ve teamed up with our partners Create Insurance to offer people in the creative industry the chance to win a year’s worth of insurance and Accountancy services. 2020 was a tough year for freelancers in the creative space, so we’re hoping we can get 2021 off to a better start…