Tax Return

Rachey

I currently do my sister in laws books for her barbers shop, she is not VAT registered. At the moment i'm just doing her tax return.

I add together her takings to calculate her income and then deduct all her outgoings to calculate her expenses (i'm sick of seeing receipts at the moment!) This ranges from rent to newspapers.

If you have a spare couple of minutes later i'd be very grateful if you could answer my questions on this...

She records little expenses such as newspapers and dinners in a little book, as most little corner shops don't give receipts. Is this acceptable to include?


I only work to net profit, then she gives it to her accountant. Is there a way i can do all of it for her? Or would it need to come from a professional? I have not yet fully completed the AAT qualification.

I thank you all in advance for any help/ advice you give :001_smile:

groundy

I would say if they are small expenses you should be able to argue with HMRC, however most small newsagents will give a receipt in my experience you just have to ask for one.

With regards to carrying on the accounts yourself, then all depends on whether your confident of your own ability to carry out the work correctly. Any tax errors on the return could be expensive for your Sister in law in the future.