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Recording cash received from clients

Sasha Owen
Accounting, Tax

If you receive cash from clients then this is really important

If clients pay you in cash then you need to have  supporting evidence to show HMRC in the event of a tax enquiry, even if you bank all the cash received.

A booking diary or excel sheet is a useful way to support the cash income, the date, name or initials , the length of the appointment and the fee charged. Ideally a reconciliation of the cash received less cash taken out to agree to cash banked.

Remember if you have a tax enquiry HMRC will be looking to see if they can find evidence that takings were not recorded, especially in cash , so a record of some sort is essential.

 

HMRC, self employed, Self employment, tax for self employed, therapists

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Sasha Owen
Sasha Owen BSc FCA qualified as a Chartered Accountant in 1983 and has been in practice as an accountant since 1987. If you think Sasha has the conventional image of an accountant then you couldn’t be further from reality. Sasha is a Reiki Master, loves the arts, music and theatre; having been on stage herself and worked backstage she really does have a deep understanding and love for the arts and alternative therapy world.

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