FINANCE

It’s That Time Again... I

f you have been sent a Self Assessment return then January 31st is the last day to file online (the deadline for old-school paper returns was 31st October 2012).

The simple rule is that if you have been advised to complete a form you must do so, regardless of whether you are employed or self-employed, otherwise you may be fined.

If you are self-employed then here are some basic tips to make your record-keeping easier (don’t forget – if you are self-employed then it is a fineable offence to NOT keep ‘proper records’): 1. If you run a business, get a business bank account. Do not be tempted to use your own current account even if your business transactions are minimal. 2. Once you have a business bank account, try to use a debit card or cheque to pay for all of your business expenses. This way if you happen to ‘lose’ your receipts then you still have a record of the transaction.

It comes around the same time every year and, thousands of people, despite knowing the time was coming, are underprepared. No, not paying off Christmas - Self Assessment return deadline day! Jamie Crampton writes about filling in forms and proper record keeping…

3. Keep all of your receipts! The general rule is – no receipt, no deduction against tax! Remember that every lost receipt can cost you up to 49 pence in tax for every £1 of receipts you lose or can’t find (depending on your total income). 4. Keep a diary detailing who’s paid you, when, for what and how much. The chances are you will already keep a diary of appointments, so why not ‘extend’ your diary to add in the amount you charge your clients? 5. Save for tax! If you are self-employed, you know you will have to pay tax, so put a percentage of your income aside to pay that nasty bill when it arrives. In general around 25% of your income should be more than enough – it’s always better to have too much than not enough!

There are numerous ways of keeping accounts records – if you have an iPhone or Android check out some of the apps available to help you save money.

Finally I’ve had a question from a REPs member who asks: “My accountant is unsure whether Personal Training is VAT exempt based on the following information from the HMRC website. Would somebody be able to clarify whether a PT generating revenue over the VAT threshold of £77,000 is liable to charge its customers VAT at 20%?”

The answer is quite simple – any business with a turnover above £77,000 in a 12-month period must register for VAT and charge VAT on anything it sells, provided the product is within the scope of VAT. In this case Personal Training is VAT-able and therefore VAT would have to be charged.

THE AUTHOR

Jamie Crampton qualified as a Chartered Management Accountant in 1995 and in 2008 set up Accounting 4 Fitness, dealing with clients in the fitness industry. In addition to this he also advises

personal training students on setting up in business and works with accounting students at the University of Bedfordshire in Luton.

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The REPs Journal 2013;26(January):24-25

The REPS Journal 2009;00(Month):00-00