| Small businesses in particular are prone to being | | | | explaining the complexities of UK Tax Law, there is no |
| stretched for time, knowledge and resources, with | | | | one else who can really help in the same way; most |
| often just a sole trader or partnership having to take | | | | accountancy professionals also have a good working |
| on the entire workload, as well as everything that | | | | relationship with the Tax Man and can communicate |
| comes with the running of a business. It is hardly | | | | with them in a way that will cut out the need for an |
| surprising then that the quality of the accountancy | | | | interpreter; so, make engaging an accountant a priority. |
| records sometimes takes a bit of a back seat. | | | | Use either a good accounting software package or an |
| If, on top of this you are also very new to business, it | | | | online accounting system. Having the sort of instant |
| could be that you are, in addition, struggling with a | | | | access to information that these systems provide will |
| learning curve as steep as an Olympic ski run. Finding | | | | make things very much easier should the Revenue |
| out exactly what is expected of your record keeping | | | | ask for particular facts; being able to provide the |
| can be a little tricky, mostly because you will be | | | | relevant information quickly and clearly will certainly |
| keeping the records for a variety of different people, | | | | endear you to HMRC. |
| all of whom probably need something slightly different | | | | Keep hard copy back-up in the form of bank |
| from them, so, it helps then, if you work out the most | | | | statements, receipts and cheque book stubs, in case |
| important people to please and aim to make them | | | | they are required, but store them in easily accessible, |
| happy. | | | | well ordered files; if they are requested, having to hunt |
| Regardless of what sort of business you have, the | | | | around a damp garage to find a few stained, |
| fact is that you will most likely need your records to | | | | mouse-chewed bits of paper, is not only a pain, but |
| ensure that you are paying the correct amount of tax; | | | | handing this sort of incomplete information over will |
| no one wants to pay more than they need to, and | | | | definitely earn you a black mark, or two. |
| under paying could land you in a whole heap of trouble. | | | | Ensure that all information is accurate and complete. It |
| So how does one keep a set of records that will bring | | | | may sound obvious, but forgetting to record a |
| a smile to HMRC's figurative face? Well, there are a | | | | transaction or logging something incorrectly will portray |
| few simple principles to follow that will at least take | | | | you and your business as, at the very least sloppy, at |
| you some of the way to getting it right. | | | | worst corrupt, in the eyes of the Tax Man, so make |
| It should go without saying, (but it rarely does), that all | | | | sure you are careful to get it right. |
| records should be presented professionally. Keep | | | | Ultimately, although HMRC are there to collect taxes |
| them clean and tidy and clear and concise. HMRC are | | | | from your business, they are not your enemy; if you |
| nothing if not impressed by neat records. | | | | are helpful and professional in your dealings with them, |
| Do not struggle on alone with things that only a | | | | they will respond far more favourably than if you are |
| professional can help with; the advice of a professional | | | | hostile and obstructive; just like you the Tax Man (and |
| accountant, especially in the early years of a business' | | | | woman) in all their guises are only human after all. |
| life can be invaluable and for understanding and | | | | |