How can S£ick Accounting help retain my business records as required by HM Revenue & Customs?
Keeping records makes sound business sense. It may seem like a challenge, particularly when you're starting out, but keeping good records will bring real advantages to your business.
Put a proper system in place from the outset, and update the information regularly.
Remember keeping only some of your records is almost as bad as keeping none at all. Update your records regularly, rather than letting the paperwork pile up.
Keeping good records
- helps you avoid paying too much tax and makes filling in your tax return easier and quicker
- avoids interest and penalties by making it easier to pay the right tax at the right time
- gives you the information you need to manage your business and help it grow
- makes it easier to get a loan
- helps you budget for tax payments
- helps HM Revenue & Customs check your tax position accurately
- could help reduce your accountant's fees if you use one - well organised information saves both time and money
The law says that everyone who pays tax must keep the records they need to fill in a tax return. If you don't keep records, how can you show what you've earned and what you've spent?
If your records are poor or incomplete and are not able to show sufficient evidence of your income and outgoings, you could end up paying more tax than you should.
If you do not maintain good records, you might not be able to render your VAT return on time and this can result in a surcharge
There are minimum time periods for which you must keep records, eg six years for VAT or five years from the latest date for filing your return for Self Assessment.
Of course you may need to look back at them yourself, or you may even have to produce them for HM Revenue & Customs if there is any question over your tax.
Wherever possible, HM Revenue & Customs will give you the benefit of the doubt in relation to your business records, but don't forget there are penalties for failing to keep proper records to back up a tax return or claim. If you are charged any penalties, you have the right to appeal against them to independent tribunals
S£ick Accounting products encompasses the requirements as instructed by HM Revenue & Customs in relation to good bookkeeping practice.
The product provides a simple to use bookkeeping solution that maintains a full and concise record of your business activities and to minimise learning time the product produces records in a repeatable format year on year.
Record storage can be provided on paper and various computer type media whilst a backup and restore feature is available within the product to allow for record retrieval if data is lost or corrupted.
