self assessment

[mistrymit]

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hi guys

i've registered online for self assessment, i have a spreadsheet of the ins and outs (mostly/all outgoings like hosting & design costs). i dont have a separte bank aco**** so all the cost have gone through my personal bank account, do i need to mention my bank information or not???

i the mean time i have set another personal account so that my first account will just have any affiliate commission going in and hosting & design costs going out and what ever the bal in the account is.do i need to mention my bank information or not???


regards
mitesh

[Barry]

If you have nothing to hide on your bank statement why hide it?

[moredial]

Self assessment just means that you are working out the tax due rather than asking the tax man to do it all for you.

All your personal, investment and business income gets rolled together when your final tax bill is calculated. Businesses under a certain turnover don't need to supply a balance sheet, so don't worry about it. If you are over the threshold then you will need to dig out records for the value of business assets and liabilities.

It makes a lot of sense to have a business bank account if for no reason other than it makes you look like a serious business. It also makes it easier to work out if an expense is business or personal. It also means you can offset bank charges against income.

[IntroSites]

I agree with above, i started by using my personal account, then opened an Abbey business account, much easier plus its free and you earn interest

[bradmca]

What would you say is the best business bank account for an affiliate only making a few thousand pounds a year? ( < 5K).

Currently I use A&L business online "Free" banking, and I am far from impressed.

[essdeekay]

Wouldn't bother with a separate "business account" - surely a second current account is more than adequate?

Si

[hrbs]

Wouldn't bother with a separate "business account" - surely a second current account is more than adequate?

Hi

As long as you use the second account only for business use then there is no need to open a "business account" as defined by the bank, unless you are breaching any terms and conditions and thereby potentially liable for charges. A limited company must have its own business account.

I would also recommend using a second credit card for business purchases, again to keep business and personal expenses easily identifiable. A cashback/reward card would be ideal eg Skycard.

If AM is your second income, consider National Insurance (assuming you have already registered as self employed with HMRC.)

If you are likely to earn profits below the lower earnings limit , apply for small earnings exception from NI (details and form at http://www.hmrc.gov.uk/forms/cf10.pdf ). If you earn over £34,840 in your day job make sure you apply for class 2 and class 4 NI deferment (info at HM Revenue & Customs: Deferment of National Insurance contributions and form at http://www.hmrc.gov.uk/forms/ca72b.pdf ).

More self employed tips and guides at Thinking of starting a business? | Business tips from High Royd Business Services Limited and Tax deductible business expenses .

Regards

Keith
Fixed Fee Accountants and Tax, VAT, Payroll Specialists providing proactive, professional service to small businesses - HRBSaccountants.com