A simple bookkeeping system

The simple bookkeeping system I describe here is a single entry system that revolves around your bank statement and the requirements of the self assessment tax system. It is not suitable for a business with lots of transactions and multiple bank accounts. Double entry bookkeeping is required for this but is much more complex and not the sort of thing you’ll be able to pick up in a weekend. For many sole traders this single entry system should suffice and provide the sort of analysis and totals you need to fill out the self assessment form.
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Self employed NIC’s

As a self employed person you have to pay two types of National Insurance Contributions (NIC’s), namely Class 2 and Class 4.
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Paperwork etc

You must keep a record of all money going into and out of your business. HMRC requires this for taxation but as I keep saying, this info is incredibly useful to you anyway. Indeed, it is essential to the smooth running of your business. Doing this accurately and often will enable you to create a precise snapshot of your business finances at anytime.
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Separate business & personal finances

Do all you can to keep personal and business finances separate. This is especially important if your business is cash based as HMRC will look closely at your affairs to discover if you’ve been syphoning off cash from sales directly into your pocket.
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Tax saving tips

Reduce your tax liability with these tax saving tips.
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Self assessment deadlines

Avoid late payment and filing penalties by sticking to the self assessment deadlines.
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