Copyright birminghammail
A tax expert has issued a warning for UK households to hand over details of their business expenses and keep records. A personal finance expert spoke out on TikTok with a warning for workers and businesses who lodge expense claims. Lindie J warned: "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? READ MORE Thousands of Blue Badge holders issued update over free bus travel "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." She added: "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 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 2 different accounting periods, according to the HMRC website. If you do not prepare accounts, you will need to record your income and expenses for each tax year (6 April to 5 April).
