Bookkeeping

For those clients who feel able to do their own bookkeeping, we have provided a simple method of recording all your income and expenditure. This is a facility provided purely for your convenience, and you do not have to use it if you prefer not to. Otherwise, simply fill in the form on a weeklyor monthly basis and either send them directly to us as email attachments online, or print them off and send them by post. You may send them to us on a monthly, quarterly or yearly basis at your convenience.

Please note that we specialise in online accounting systems like Sage, Clearly Bookkeeping and Quicken, so you need not feel obliged to do any of the above as we can complete the whole process on your behalf.

Documentation

In order to complete your set of accounts we need certain items of documentation. Please note that for VAT registered clients (those with an annual turnover of more than £68,000) we require these on a quarterly basis, for others an annual submission is sufficient. In any case, a member of our staff will contact you when your return is due, so there's no need to panic! We require:

• VAT Returns
• Sales Invoices
• Bank Statements
• Purchase Invoices
• Details of any Direct Debits & Standing Orders
• Cheque details (stubs)
• Weekly Bookkeeping Sheets
  

Example - Sole Trader

The following is a typical (though fictitious) record of weekly income and expenditure laid out on an Excel Spreadsheet, which we have provided:

DOWNLOAD
Bookkeeping System Sheet - Sole Trader
To download - CLICK HERE

Explanatory Notes

These notes are to give you some idea of the kinds of things that you might include in your weekly return. Those items that do not apply should be left blank.

20. Wages
A sole trader may employ others, or may need to employ other workers on a temporary basis and therefore pay wages.

21. Subcontractors
Payments/Wages paid for work that is contracted out to other sources/companies.

22. Travel & Subsistence
This include bus, taxi, train and air fares a well as the cost of staying/working away (hotels, guest houses etc) if not refunded.

23. Motor Expenses
Includes all petrol, servicing, insurance AA, RAC memberships, parking, cleaning etc...

24. Insurance
This includes business insurance, third party liability insurance, etc...

25. Rent
Rent on business premises, (eg, workshop, office, storage facility, garage, etc). Domestic Rent is not included in this category.

26. Rates
On business premises (as above) and including Water rates.

27. Heat & Light
The cost of these utilities for the business premises.

28. Telephone
The cost of the telephone bill - we will make a proportional calculation as to how much of it is personal and how much work-related/business. Include Mobile Phones.

29. Computer Costs
Running costs such as Internet connection cost, online chargers, etc... excluding entered under PPSA (below).

30. Accountancy
The costs you pay to us.

31. Loan/Lease Repayments
These might include loans, car hire/purchase, etc...

32. PPSA - Postage, Printing, Stationery & Advertising
This is self-explanatory and includes any costs covered by the above.

33. Cleaning
Cost of cleaning business premises.

34. Materials
Any materials purchased in order to carry out your business services. As examples, a builder might include cost of mortar, sand, building materials, etc, and an office might include computer disks, software and hardware, etc.

35. Subscriptions
These might include such things as subscriptions to professional/trade bodies and associations, professional publications, etc...

36. Other
Items not covered by any other category. The examples shown might give you some idea.

Example - Retail Company

The following is a typical (though fictitious) accounts of weekly income and expenditure laid out on an Excel Spreadsheet, which we have provided:

DOWNLOAD
Bookkeeping System Sheet - Retail Companies
To download - CLICK HERE

Additional Information

Legitimate Claims
The Weekly Returns should only include legitimate business expenses, and NOT all outgoings of a personal nature - but, if in doubt, please include. We do, however, reserve the right to exclude those items which we feel are unjustified business expenses.

Monthly & Annual Costs
Many of your costs may occur monthly or annually - in these cases, simply enter the full amount in the week they are received/paid.

Invoices & Receipts
Please supply any relevant invoices, receipts and statements to support your Return.

Working from Home
Please do not enter a specific cost for the use of residence - we will make an entry on an annual basis under the category "Use of Home as Office" on your behalf.

VAT Payments

Most people pay their VAT quarterly, although you can pay monthly if you so desire. If your first quarter is January - March, for example, your VAT payment is due on or before 30th April; so you have a month from the end of you quarter in which to pay.

If, however, you file your VAT Returns online with Her Majesty's Revenue & Customs (HMRC), you get an extra 7 days to both submit and pay your return.

We would need your authority, as your accountant, to complete this process for you.

If this is something you would like further information on, or would like to set up, please contact us or have a look at the HMRC website.

VAT Updates from HMRC

VAT number verification
The European Commission have enhanced their on-line service which allows taxpayers to check if a quoted VAT number is valid.

The on-line service has been updated to allow taxpayers to obtain a certificate to prove that they checked that a VAT registration number was valid at a given time and date. This system has been designed primarily to protect taxpayers who become innocently involved in a chain of fraudulent transactions such as carousel fraud.

The certificate will provide valuable evidence for a taxpayer to prove that they acted in good faith should HMRC challenge input tax recovery or seek payment of lost VAT.

The new on-line system will also be useful to businesses who zero-rate sales to businesses in other EU countries. Specifically in meeting one of the conditions for zero-rating which states that your customer must be VAT registered.

The on-line service is available at the following address:

http://ec.europa.eu/taxation_customs/vies/vieshome.do?selectedLanguage=EN

Making VAT payments
HMRC’s bank account details for VAT payments have changed with effect from 8 July 2009. This is part of an ongoing exercise by HMRC which involves moving its banking arrangements from the Bank of England to commercial banks.

HMRC is now using Citi Bank for electronic payments by BACS Direct, Internet/telephone banking and CHAPS.

HMRC’s new bank details are as follows:

Account name: HMRC VAT
Account number: 11963155
Sort code: 08 32 00

When making VAT payments it is important that taxpayers use their VAT registration number as the reference number to ensure payments are correctly credited to their VAT account. The VAT number should be used with no gaps to save unnecessary delays in processing the payment.

Whilst HMRC is working closely with banks to implement the new account details some banks may be unable to make the payment using the new account details. HMRC will continue to process payments made using the old bank details for the time being. Taxpayers using the new banking details should ensure that all templates and instructions for online banking payments are updated for the change.

Bank Giro payments will also be changing and for the time being transactions will be handled by Natwest Bank. New Bank Giro books will be printed in due course. In the meantime, payments should be made as normal.

And Finally....

If you would prefer to receive our ready printed Weekly Bookkeeping Sheets please phone and request at
Tel: 0161 655 2000.