Self Employed, can I ignore some expenses?

by **mark001** on Sun Aug 01, 2010 6:23 am

I don't have any records as to who from, how much and when I purchased things I sold. Can I just do book keeping for income and ignore the cost of the stuff I bought as an expense?

So fro my book keeping can I just do this (Example):

Income
Item1 - £10
Item2 - £10
Item3 - £10
Total: £30

Expenses
Item1 postage: £2
Item3 postage: £2
Item3 postage: £2
Total: £6

Profit: £4

by **JRG** on Wed Aug 04, 2010 1:59 am

If your total income is £30 and your total expenses are £6, then your profit is £24 (not £4!).

I suggest that from now on you detail the actual cost of the things you buy to sell. Unless you show the cost (even a nominal amount would be better than nothing) you may be paying more tax than you should.

by **mark001** on Mon Aug 09, 2010 6:26 pm

ok, thanks.

The £4 thing was a typo.

by **Aftab** on Mon Aug 09, 2010 9:31 pm

Hello,
Its good that you have started keeping all the reciepts, but to be honest its a very common problem, well its a true if you put a reasonable expenses, and if HMRC pick, you can tell them i dont have the record and then see on what figure they make a settlement with you.

Regards,

Muhammad Aftab

by **mark001** on Tue Aug 10, 2010 10:17 am

Aftab wrote:Hello,
Its good that you have started keeping all the reciepts, but to be honest its a very common problem, well its a true if you put a reasonable expenses, and if HMRC pick, you can tell them i dont have the record and then see on what figure they make a settlement with you.

Regards,

Muhammad Aftab

Cool, well thats good. Thanks for the info.