What your accountant needs to file your tax return
If you use paper records, here is a breakdown of what records your accountant will need to produce your accounts and your self-assessment tax return.
Remember the 2023-2024 tax return covers the tax year 6th April 2023 to 5th April 2024. If your accounts have a 31st March year-end, that will be 1st April 2023 to 31st March 2024.
The basis period reform moves the taxation basis from current year to tax year which means that for the 2023-2024 year you may be taxed on a long period of account up to 5th April 2024. Speak to your accountant if you need more information.
Records for your tax return
Employment Income
If you have any employment income in addition to being self-employed, you need to provide your P60, or P45 if that employment income ceased during the year.
P11d
This would be for any benefits in kind you received from your employment.
Dividends
Dividends received during the year.
Rental income
Your accountant will need to see details of your rental income and property management expenses. If you have a letting agent, you will need to provide statements from them. Also, your mortgage interest allows for some additional relief.
The rules are complicated. Your accountant can figure out how much tax relief you can get on the interest and mortgage fees you paid.
Private pension payments
Give details of any payments made as these can give you additional tax relief if you qualify.
Bank interest received
Any interest received during the year (excluding ISAs). HMRC is tightening up its links with banks so ensure you provide the correct figures.
Other income or gains
Include any you received during the year. This may come from another self-employment job that you may have or a chargeable gain from selling a rental property or some shares etc.
Your tax return must show all your income so check with your accountant anything you are unsure of.
Organising your finances early can help you avoid expensive penalties or interest. Additionally, you won't make rushed errors or have enough time to plan for paying taxes.
Records for your accounts
Bank statements
like a deposit or reserve account, include their statements along with your main account. Remember to include any cheque books and paying-in books if you still use these.
Loan statements
Your accountant will need to see these to make sure the closing balance is included in the accounts correctly and that the correct amount of interest has been included as a deductible expense.
Finance agreements
Copies of any new agreements taken out in the year. The interest on the repayments is a tax-deductible expense and the asset purchased could attract the annual investment or other capital allowances.
Business credit card
Your accountant will need your business credit card statement. If you occasionally use your personal card for work expenses, inform your accountant.
Sales income
Sales income is the total money earned from sales, including unpaid invoices and daily earnings if invoices aren't given.
Invoices and expense receipts
Include all purchase invoices and expenses receipts for the period. If your accountant lacks these, they might have to guess and/or overlook certain expenses, which could raise your tax payment.
Petty cash receipts
Your accountant will need the petty cash balance at the year end. They will need to reconcile your cash, so these records are vital.
Payroll records
If your accountant doesn't handle payroll, you should provide them with a print-out of each month's pay run. They will have the ability to check the inclusion of all wages and employers' national insurance.
Stock value
You must conduct a valuation of any stock held at the end of the year. You should include what it cost you, or its value if lower.
Bookkeeping software is more efficient
Keeping paper records may not be the best system, as your accountant may contact you soon after you provide your records. They may need missing paperwork or paperwork that relates to the correct tax year.
Moving over to online bookkeeping software is the most efficient way to keep track of your records. This will keep them all in one place and the software will automatically organise them for you. Your accountant can then access your online records to ensure nothing is missing.
At TaxAssist Accountants we offer clients access to QuickBooks, Xero and Dext, as well as providing you with training to ensure you are happy with how it all works.
How TaxAssist Accountants can help
We can help you complete your tax return accurately so that you can meet the deadline and have already assisted many self-employed individuals and business owners to file theirs. Call us today on 01200 407 200 or complete our easy online form to get in touch.
Last updated: 10th April 2024