Being an Oxfordshire Business Enterprise Advisor
Over the years I have advised many individuals wishing to become self-employed and many that have already actively commenced in Business.
The most common question asked of me, with my Accountant hat on, is how do I ensure my record keeping is acceptable?
Keeping it simple
Well first of all whether you’re a sole trader or limited company, you really should avoid purchasing expensive accounting software unless you have an overly complicated Income & Expenditure Accounts, with many transactions.
Excel is sufficient to handle simple Income and Expenditure transactions. It would take me approximately 1 hour to train anyone who has no idea of basic accounting principles.
Business Bank Account
All you need then is to open a dedicated Business Bank Account and keep personal expenditure separate from the Business.
Another important point I would like to make is, do not register with HMRC as a Business until income is being realised.
A word on partnerships
My advice on partnerships is to avoid them like the plague. Not only are the accounts construction complicated, special software is required to file a partnership tax return with HMRC.
Personal allowance claims
Here is my note on a change to personal allowance claims.
Transferable tax allowances for married couples and civil partners
Who is likely to be affected? Income tax payers, employers and pension providers.
General description of the measure
This measure will allow a spouse or civil partner who is not liable to income tax above the basic rate to transfer up to £1,050 of their personal allowance to their spouse/civil partner, provided that the recipient of the transfer is not liable to income tax above the basic rate.