The Most Simple
Bookkeeping System in the World
We call it
‘Envelopes’
The object
of this basic method of bookkeeping is to
1. Provide an annual summary of
expenses broken down into categories, and
2. Provide an ‘audit trail’ so that you
can show evidence for each expense that you claim
You need half a dozen or more envelopes, a
biro, and a calculator.
Each
envelope should be labelled with; your name, the accounting period, and a
category of expenditure. For example:
John Smith Year to 31 March 2008 Telephone
Each time
you spend money on which you wish to claim tax relief, place the
invoice/receipt in the relevant envelope.
At the end of the accounting period, add up the contents of the envelope
and write the value on the envelope.
For example:
John Smith Year to 31 March 2008 Telephone £370
Lost Receipts: when you realise that you have
lost a receipt (or you have forgotten to ask for one) make a note on a piece of
paper and place this piece of paper in the envelope instead of the lost receipt.
DO
NOT try to make this piece of paper look like a receipt. That might be misinterpreted as false
accounting by the Revenue. The piece of
paper should show DATE,
ITEM PURCHASED, FROM WHOM PURCHASED, COST, and REASON (ie original lost).
No Receipt Issued: some items, for example car tax
(VED) and car insurance often seem to be purchased without a separate receipt
being issued. Make a note, as above.
If in Doubt About An Item Put the receipt in a separate envelope
labelled something like
John Smith Year to 31 March 2008 Questions for Raibeart
If you do
this efficiently, and while your circumstances don’t change, my fee should
remain at £125 for completing your tax return.
Disclaimer This system will not be suitable for
everyone It is only suitable for very
small businesses It will certainly not
be suitable if you are registered for VAT
If you have any doubts about the suitability of this system for you
please seek the advice of a suitably qualified person