How best to prepare for your self-assessment tax return

• Financial Information Should be kept throughout the year, whether electronically on a spreadsheet, or in paper form.
• How to record financial transactions.
• Be aware of what business expenses are allowed to be claimed and what are not tax deductible.
• Be aware of your ongoing Tax bill estimation.
• Watch for the dates for submission of the online self-assessment tax return.

Record Keeping (Book Keeping)

Income Records:

• Invoices (Requests for Payment) issued to customers
• Bank statements showing business income
• Receipts for cash payments to the Business

Expense Records:

• invoices received for business purchases (and date paid)
• Receipts for items purchased
• Mileage logs (if you use a vehicle for business)
• Utility bills (even if working from home and claiming part of those costs)
• Cash books for any petty cash expenses

Financial Documents

Sales Invoice

A sales invoice is a document issued by a seller to a buyer detailing the products or services sold, quantities, prices, and payment terms.

It’s essentially a request for payment and serves as a record of the sale.

If you’re a sole trader, the invoice must also include:

• your name and any business name being used
• an address where any legal documents can be delivered to you if you are using a business name

A Sales Invoice is a document:

• Given to the buyer / purchaser for goods or services sold.
• Issued to the vendor or customer.
• That tracks how much money you must receive (account receivable).
• That tracks your business income.
• It can be used to track your inventory.
• It can also be used to track your cash inflow.

The Purchase Order

A purchase order  is a document confirming a transaction, proving that

a purchase has been made.  It will detail the items required, the quantity, type, size and price quoted of each item.  It will then have a total of the bill expected.

Key Functions of Purchase Order

• Sent by Buyer to the Supplier
• Will have a unique Purchase Order number
• Tracks money to be paid out by the Buyer, or matches pre-payment amount to a pro-forma invoice
• Records business purchases
• Helps with Monitoring inventory levels

Purchase Invoice

A Purchase Invoice is a document generated after a Purchase Order (PO) is fulfilled,

used to verify that the goods or services received match the original order.

Key Functions of Purchase Invoice :

• Sent by Supplier after delivery
• Issued by Supplier/vendor to Buyer
• Tracks money paid out or Payable
• Records business expenses
• Monitors inventory levels

• Confirms delivery of goods/services as per your order.
• Ensures accurate matching of quantity and value
• Typically used by larger organizations

• Manages your cash outflows