Copyright birminghammail
A HM Revenue and Customs (HMRC) alert has been issued to Brits, and it comes after a warning was given to anyone who earns more than £50,000. Some people run the risk of paying a higher tax bill if they don't get their financial affairs in order. Though it doesn't apply to everyone, you may want to check if you're entitled to claim any money , as a woman has recently explained how important it is to log what you're owed. Explaining how people could end up paying more to HMRC , Lindie J, a small business accountant, recently shared some top tips with people who may be entitled to extra cash. It's worth noting, as there are various things you can claim expenses for. For example, it was previously revealed how drivers could also be handing over too much money. Lindie explained: "Not keeping receipts is like trying to claim on insurance without proof. No evidence, no payout. Be honest with me, where are your receipts right now? "The subscription invoice, the receipt for your new business phone, the train ticket, even the mileage log - that mileage log. Are they stuffed in a bag, fading in the glovebox or buried somewhere in a shoebox or somewhere where you don't really know? "I get it. You're busy running your business, serving clients, juggling family and the last thing on your mind is a little bit of paper but, here's the thing, not keeping receipts is like trying to claim on insurance without proof. "HMRC, they can disallow those expenses and hit you with a higher tax bill. That's why I always say make it easy for yourself. Snap the receipt as soon as you get it, and you're done." If you don't want to keep them all in a pile or a shoebox, she said there are digital apps you can use to keep them all together in one place. This of course makes sense, as so many receipts are digital these days. For those who are entitled to claim business-related expenses, she said it's vital to know, as it could make a difference between you saving money or losing out. According to Lindie, it's super important information to remember. Little you may know, HMRC can increase your tax bill if you cannot provide receipts, or another form of valid proof, for expenses you have claimed. If you are a sole trader or limited company and HMRC conducts an inquiry into your tax return, you need to be able to prove that all business expenses you deducted were genuine. If you fail to have sufficient evidence, HMRC has the power to reject your claimed expenses. This leads to increasing your taxable profits and, in turn, boosting your tax liability. The HMRC website states: "If you prepare accounts for your business, you will need to choose the dates you keep records to and from. This would usually be the same dates each year. "It may be easier to complete your tax return if the dates match the tax year (6 April to 5 April). This is because HM Revenue and Customs (HMRC) works out tax based on the tax year. "If your accounts do not match this, you will need to allocate profits to two different accounting periods. If you do not prepare accounts, you will need to record your income and expenses for each tax year (6 April to 5 April)." HMRC says you need to keep records of: For more detailed information, visit the website. It breaks down a lot more information about how to record expenses.
